Bajaj Allianz General Insurance 2021

BAJAJ ALLIANZ
GENERAL INSURANCE
COMPANY LIMITED
21st
ANNUAL
REPORT
2020-21
CONTENTS
Corporate Overview 04-37
Corporate Information..................................................................................................... 04
The Torchbearers..............................................................................................................07
MD & CEO’s Message ..................................................................................................... 09
Management Discussion and Analysis...........................................................................12
Statutory Reports 40-88

Directors’ Report ............................................................................................................. 40
Annexures to Directors’ Report ..................................................................................... 50

(Including Corporate Social Responsibility Report, Rule 5(2) disclosures, Report on
Corporate Governance and Secretarial Audit Report)
Management Report ...................................................................................................... 77
Financial Statements 90-161

Independent Auditors’ Report ....................................................................................... 90
Revenue Account............................................................................................................. 98
Profit and Loss Account................................................................................................... 99
Balance Sheet................................................................................................................ 100
Receipts and Payments Account ..................................................................................101
Schedules........................................................................................................................102
Annexures.......................................................................................................................149
1
2
Corporate
Overview
3
CORPORATE
INFORMATION
Board of Directors Audit Committee
Sanjiv Bajaj Lila Poonawalla

Chairman Chairperson
Ritu Arora Ritu Arora
Niraj Bajaj Sanjiv Bajaj
Sergio Balbinot Ranjit Gupta
Meleveetil Damodaran Suraj Mehta
Ranjit Gupta Anami Roy
Suraj Mehta Shashi Kant Sharma
Lila Poonawalla Investment Committee

Anami Roy Sanjiv Bajaj
Chairman
Shashi Kant Sharma
Ritu Arora
S Sreenivasan
Ranjit Gupta
Avais Karmali
Alternate Director for Sergio Balbinot Tapan Singhel
Tapan Singhel Ramandeep Singh Sahni

Managing Director and Chief Executive Officer
Amit Joshi
Rajeev Kumar
Gaurav Malhotra
4
Corporate Social Responsibility Committee Risk Management Committee
Sanjiv Bajaj Sanjiv Bajaj
Chairman Chairman
Ritu Arora Ritu Arora
Ranjit Gupta Ranjit Gupta
Anami Roy Tapan Singhel
Tapan Singhel Chief Financial Officer

Nomination and Remuneration Committee Ramandeep Singh Sahni
Lila Poonawalla Company Secretary & Compliance Officer

Chairperson
Onkar Kothari
Ritu Arora
Joint Statutory Auditors
Sanjiv Bajaj
S R Batliboi & Co. LLP
Ranjit Gupta
Chartered Accountants
Suraj Mehta
BSR & Co LLP
Anami Roy Chartered Accountants
Policyholders’ Protection Committee Secretarial Auditor
Sanjiv Bajaj Shyamprasad D Limaye

Chairman Practising Company Secretary
Ritu Arora Registered Office & Head Office

Ranjit Gupta Bajaj Allianz House, Airport Road,
Yerawada, Pune 411006. IRDA Reg No.: 113.
Tapan Singhel
www.bajajallianz.com
CIN: U66010PN2000PLC015329
5
Sanjiv Bajaj
Chairman
6
Ramandeep Singh Sahni Sasikumar Adidamu T A Ramalingam Ashish Sapra
Chief Financial Officer Chief Distribution Officer Chief Technical Officer Chief Distribution Officer
- Institutional Sales – Retail Sales
K S V V S Murthy Naidu Aditya Sharma Sourabh Chatterjee Aashish Sethi

Country Head - Products Head - Motor Business Head - IT, Websales, Travel Head - Bancassurance
(Private Banks & NBFCs)
K V Dipu Vikramjeet Singh Alpana Singh Ashish Agrawal

Head - Operations & President and Chief Head - Bancassurance Head Agri. Business & CSC
Customer Service Human Resources Officer - PSUs, RRBs & Co- Banks
Gurneesh Singh Khurana Sriram Srinivasan Iyer Amarnath Saxena Amit Joshi
Head - Motor LOB and National Head - Health National Head - Corporate Chief Investment Officer
New OEM acquisition Insurance Business
The Torchbearers
7
Tapan Singhel
8
Corporate Overview Statutory Reports Financial Statements
04-37 40-88 90-161
MD & CEO’S Message

Dear Friends,
From the last year we have all been experiencing something that has not just impacted our Industry, and our Economy,
but has impacted the whole Country and the world at large, the COVID-19 pandemic. Something of this scale and nature
was not only unprecedented but was unlike anything, any of us have ever experienced. The insurance industry was deeply
impacted with the lockdowns becoming a regular reality throughout the year. We realised that plans had to be pivoted and
it was the time to convert this challenge to an opportunity towards becoming more efficient. Despite these challenging
and turbulent times, we were able to register one of our most profitable years and have maintained our profit leadership
in the insurance industry.
We realised it was the time to be cautious, measured and yet assertive towards our long-term push to be a mobile app.
centred organisation that was here to solve the worries of customers irrespective of where they are, at their fingertips
and in the language that they speak. It is this assertiveness that carried us towards the steps that we took to make our
customers’ lives much simpler in these turbulent times. First, however we wanted to ensure the safety and wellbeing of
our people. With the entire market reeling under the effects of the pandemic and subsequent lockdowns, we immediately
sprang into action beginning with initiatives aimed at taking care of our employees and channel partners. We felt that
continuous communication and engagement was the best way to address their worries and we did it successfully through
multiple channels. We also facilitated timely COVID-19 testing, started a home isolation program where we provided
home isolation kits and daily consultation from experts. Not only have we setup testing centres at our offices, but we
have also facilitated help with hospitalisation, and announced a COVID top-up policy where we reimburse every expense
related to COVID-19 treatment for our employees on duty. Next was to address the anxiety that everyone was feeling.
For our employees, we set up 3 exclusive employee assistance helpline numbers before the lockdown, partnering with
experts. They have dedicated and trained counselors on board to speak to employees who are experiencing worry, panic,
anxiety, how to cope with social distancing, frustration due to changed routines etc. We have now also started vaccination
programs for all our employees as per Government criteria set and have tied up with hospitals throughout the country to
ensure all our employees and their family members get vaccinated at the earliest.
We have built many industry first digital capabilities over a period of time and it was the right time to use these to
our advantage. These digital capabilities were brought to the fore in the truest sense to ensure that our customers can
seamlessly interact with us, renew polices, register claims and get services through our digital assets. Our digital servicing
was highlighted through our digital first BAGICARE CRM, where we offered seamless work from home experience to our
employees, and pushed customer servicing on our Website, Social media, Chatbot and handled close to 12 lakh requests
and more than 1.5 crore messages. Our mobile applications also took center stage with our Caringly yours app becoming
the first insurance app to cross 10 lakh downloads and our Farmitra – Caringly Yours app crossed 2 lakh downloads
helping many of our farmer customers. We took one more step ahead towards complete core transformation by making
Retail health live on the Maximus platform in addition to the current travel portfolio. We launched ‘Digi Swasth’, an end
to end integration with third party administrators for pre-medical checkups and ‘Saksham’ aimed at automation of group
mediclaim enrollment and allotment of health ecards. We took digital policy issuance a step ahead and I am happy to say
that we moved digital issuance from close of 85% last year to almost 97%, that is close to 1.9 crore policies issued through
portals and Ezee Tab. During this period, we also entered into new partnerships with established players like Punjab and
Sindh Bank and India Post Payments Bank; e-commerce players like Paytm and 2GUD (formerly eBay), and motor tie-ups
with Tata Motors Pvt. Ltd., Citroen, Royal Enfield, TAFE and Tata Hitachi, amongst others. With a continuous innovative
approach in mind, we also launched first of its kind Pet Dog Insurance product. Keeping in mind market requirements and
those of our partners, we also launched the Travel Ace International product, Group Corona Protect, Digital Suraksha group
insurance policy, Bajaj Allianz Suraksha (for HDFC Bank) and Union Suraksha (for Union Bank)
Our focus on digitalisation, prudent underwriting approach, digitally led relationship management and emphasis on cost
rationalisation is reflected in our figures. Even in a challenging environment the organisation continues to be recognised as
distribution friendly insurer, with an expertise deeply rooted in risk management. Some of our key performance indicators
have been highlighted below:
We clocked in a GWP of ` 12,624 crore
Our underwriting profit stood at ` 237 crore
9
Bajaj allianz general insurance company Limited 21st Annual Report 2020-21
The Company continues to be one of the most profitable insurers in the industry, with a Combined Ratio of 96.9% and
Profit Before Tax of ` 1,769 crore, which is a growth of 28.6%
We were able to deliver a Return on Equity of 20.3% (excluding fair value)
Over the year, we issued close to 2.5 crore policies and settled more than to 30 lakh claims
We received an ISO 9001:2015 re-certification for operations
Our prudent approach to business, with the customer at the centre of all our industry first innovations has won us
recognitions across the industry and beyond. A few major recognitions were,
We won the coveted Global Celent Model Insurer Award 2020 for the Digi- Swasth initiative under digital and emerging
technologies category.
We were recognized as The Best Insurer in India by IDC Financial Insights Innovation Awards 2020
We won the prestigious Business Today-Money Today Financial Services Awards as the ‘Best Motor Insurance
Provider of the Year’
We were named by IDC Financial Insights as Best Digital Insurer in Asia for IDC Financial Insights Innovation Awards
2021 (FIIA) for Digi-Enroll initiative, an end-to end automated, interactive and customized portal for GMC Customers.
We won the OLX People HR Excellence Awards 2021 (Hosted by ET HRWorld.com) under the Change Management 2020
category for COVID-19 management & Work from home policy.
We won the Global Celent Model Insurer Award 2021 under Digital and Emerging Technologies category for SkillSity –
one of its kind, AI driven, personalized learning platform
We won The Digital Insurance Initiative of the Year - India for Maximus, our Core transformation and the Marketing
Initiative of the Year - India for Care Heroes initiative in the Insurance Asia Awards 2020
We were honoured as the Operating Model Master India for Digi Swasth project at the 4th Annual IDC Digital
Transformation Awards India
Our Agriculture mobile application, Farmitra – Caringly Yours, won Gold in connected insurance and ecosystems
category at the prestigious EFMA Accenture Innovation in Insurance Awards 2020
Our digital capability building and preparedness to accelerate digital interactions throughout the spectrum of our
distribution has yielded good results as the economy was on the cusp of a recovery closer to Q3 ending and most of Q4.
Business too was on the upward curve, but towards the end of Q4 however, the COVID-19 virus seems to have made
a very strong comeback in the form of a second wave, putting pressure on the insurance industry as well. We as an
organisation are confident that we will emerge stronger with our new business models in place and more than that, the
strong team that we have, which has always emerged out of difficult situations to provide the best in class customer
service, like we did in the last financial year. We maintained the lowest grievance ratio of 0.71 per 10,000 policies and the
highest net promoter score of 65 for motor and 63 for health. This is in a year where we were not just held back by COVID,
but had several Natural calamities affecting us throughout the year like the Cyclone Nisarga, Kerala Floods, Assam Floods,
Cyclone Amphan, Cyclone Nivar and the Hyderabad floods to name a few. We have always believed that being there with
our customers in their time of need is the duty of every insurer, whether we are able to be there in person or make life
simple for them remotely. We felt that a key part of this was how we engaged and communicated with our customers. The
Company continued to sustain high level of brand visibility and engagement on social media through several innovative
and relevant campaigns during the pandemic including #CareWillOvercome and #contactlesscare. High frequency of LIVE
Streaming sessions conducted by leadership teams helped built customer connect while building thought leadership in
varied domains of business. Our digital activities itself helped us to reach over 25 crore people. The brand promotion to
support Agriculture business has helped built brand visibility in remotest part of the country.
The new financial year will bring in its own set of challenges which are already lined up. We are however confident that
things will only get better for the industry and economy at large as most citizens of the country should be vaccinated in
this year. This is also the year that Bajaj Allianz General Insurance turns 20 years old on the 2nd of May 2021. This journey
of profitability, innovation and excellence would not have been possible without the continued support and belief our
customers, employees, partners, regulator and all the stakeholders. We look forward to serving and working closely with
all of you to ensure that we set many more such benchmarks and continue to be the insurer of choice for the citizens
of our country.
Caringly yours,
Tapan Singhel
10
MANAGEMENT DiSCUSSION AND ANALYSIS
A. Economic and Industry performance

1. Macroeconomic overview
FY2021 was a year of volatility significantly impacted by the Pandemic. India’s GDP growth contracted by 22.4% in Q1 2021
and 7.3% in Q2 2021. Thereafter Indian economy showed resilience and moved into expansion zone and grew by 0.4% in
Q3 2020-21. The rebound from the COVID-19 induced slump has been sharper than anticipated. As per RBI monetary policy
report, it is expected that growth momentum will continue in Q4 2021. But due to recent surge in COVID-19 infections in
many states in March 2021, growth will stifle in Q1 2022.
Going forward, rural demand is likely to remain resilient on good prospects for the agriculture sector. Urban demand and
demand for contact-intensive services is also expected to strengthen with the spread of vaccination. The fiscal stimulus
under Atma Nirbhar 2.0 and 3.0 schemes and increased capital outlays and the investment-enhancing proposals in the
Union Budget 2021-22 will likely accelerate public investment and crowd-in private investment. While the domestic
financial conditions are expected to remain supportive in view of the guidance from RBI that systemic liquidity would
continue to remain comfortable over the ensuing year, the risks of spillovers from volatility in global financial markets
remain elevated.
Overall, the economy is estimated to contract by 9.6% in 2020 as lockdowns and other efforts to control the COVID-19
pandemic slashed domestic consumption without halting the spread of the disease, despite drastic fiscal and
monetary stimulus.
Over past few years, India has emerged as one of the fastest growing major economy in the world and is expected to be
one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong
partnerships (as per IBEF). India is expected to be the third largest consumer economy as its consumption may triple to
US$ 4 trillion by 2025, owing to shift in consumer behaviour and expenditure pattern (according to a Boston Consulting
Group (BCG) report). It is estimated to surpass USA to become the second largest economy in terms of purchasing power
parity (PPP) by 2040. India is the fourth-largest unicorn base in the world with over 21 unicorns collectively valued at US$
73.2 billion (as per the Hurun Global Unicorn List). By 2025, India is expected to have ~100 unicorns by 2025 and will create
~1.1 million direct jobs according to the Nasscom-Zinnov report ‘Indian Tech Start-up’.
Turning to the growth outlook, rural demand remains buoyant and record agriculture production for FY2021 bodes well for
its resilience. Urban demand has been gaining strength on the back of normalisation of economic activity and should get
a fillip once the vaccination drive gains momentum. The fiscal stimulus from increased allocation for capital expenditure
under the Union Budget 2021-22, expanded production-linked incentives (PLI) scheme and rising capacity utilisation should
provide strong support to investment demand and exports. Firms engaged in manufacturing, services and infrastructure
polled by the Reserve Bank in March 2021 were optimistic about a pick-up in demand and expansion in business activity
into 2021-22. Consumer confidence, on the other hand, has dipped with the recent surge in COVID infections in some states
imparting uncertainty to the outlook. Taking these factors into consideration, the projection of real GDP growth for FY2022
is expected to be in the range of 7% to 10.5% which is expected to be the fastest growing major economy with only China
coming in a close second in 2021 (as per United Nations).
Domestic economic activity is widely expected to rebound strongly in 2021-22. All time high GST collections are an
indication of the rebound. Rapid vaccination drive, large pent-up demand, investment enhancing measures by the
government and better external demand provide an upside to the baseline growth path while surge in infections, new
mutants, deviation of the south-west monsoon from the baseline assumption of a normal monsoon, higher crude oil
and non-oil commodity prices and global financial market volatility impart downside risks to the baseline growth path.
Lingering supply chain disruptions, rising global crude oil prices and stronger pass-through of input costs could push
headline inflation above the baseline. There is also the probability of softer international crude oil prices on the back of
a weaker than anticipated global demand, bountiful foodgrains production and effective supply management coming
together to ease inflation more than anticipated. The evolving COVID-19 trajectory and progress on vaccination however
remain the key drivers of economic activity and inflation, globally and in India.
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Management Discussion and Analysis Corporate Overview Statutory Reports Financial Statements
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2. Insurance industry overview

The insurance industry of India consists of 57 insurance companies of which 24 are in life insurance business and 33 are
non-life insurers. Government’s policy of insuring the uninsured has been pushing insurance penetration in the country
and proliferation of insurance schemes. The recent enhancement in the FDI limits in the Insurance sector to 74% is likely
to attract even more insurers especially on the General Insurance front given the low capital requirements, high valuations
and low penetration experienced in the industry.
Gross Direct Premium (GDPI) underwritten in India by private and public insurers general insurers grew at 2.0% in FY2021
and reached ` 169,840 crore. Including standalone Health Companies and Specialised Companies the industry grew 5.2%
and reached ` 198,735 crore. Overall non-life insurance penetration (premium as % of GDP) in India was at 0.94% in
FY2019. (Source: General Insurance Council, IRDAI)
a. Premium growth and relative performance of insurers

Gross Domestic Premium Income (GDPI) growth (in %)
GDPI Growth Trend FY2017 to FY2021
72.5%
41.9%
41.1% 36.6%
31.5%
35.5% 27.4%
33.0%
30.2%
24.3% 26.2%
21.6%
26.3% 17.5% 12.2%
12.5% 5.1%
8.8% 1.3% 11.7%
12.6% 5.2%
6.4%
2.0%
FY2017 FY2018 FY2019 FY2020 FY2021
-10.1%
Private PSU Standalone Specialized Total
Source: IRDAI and General Insurance Council statistics
Over the period of FY2017 to FY2021, on GDPI:
The industry including monoline and specialised insurers registered a growth of 11.6% (CAGR)
o Within the industry, Private multiline insurers registered a growth of 16.2% (CAGR),
o Within the industry, Public multiline players registered a growth of 4.5% (CAGR).
Both Standalone and Specialized segments delivered a pretty healthy growth in last few years.
In FY2021, the growth was largely driven by Standalone Health Insurers and specialized players whereas PSU
multiline players registered a de-growth.
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Market share based on GDPI (in %)

Market Share Trend FY 2017 to FY2021
6.5% 6.0% 4.8% 5.6% 6.6%

4.6% 5.5% 6.7% 7.6% 7.9%
45.0% 40.5% 38.6% 36.1%

47.0%
48.0% 48.2% 49.3%

42.0% 43.4%
FY2017 FY2018 FY2019 FY2020 FY2021
Private PSU Standalone Specialized
Over the period of FY2017 to FY2021, the market share of private players increased from 42.0% to 49.3% and
corresponding decrease observed in PSU players from 47.0% to 36.1%. Also, standalone health insurers share has
increased from 4.6% to 7.9%.
b. Shift in business mix

Line of business (LOB) wise mix
Line of business wise mix trend FY2017 to FY2021
6.5% 7.1% 6.6% 6.6% 6.6% 7.0% 6.1% 5.7% 5.3% 6.3%
6.8% 8.2% 7.3% 11.0% 5.7%
18.4% 18.2% 19.3% 15.9% 15.2%
11.4% 32.0% 12.6% 31.8% 34.3% 16.7% 16.5% 38.0%

13.7% 33.7%
49.3% 48.4% 47.0% 46.7% 45.5%

39.4% 40.7% 38.3% 34.7% 32.3%
6.2% 6.4% 5.7% 5.2% 5.4% 5.5% 6.0%

5.1% 5.4% 5.5%
8.3% 8.4% 8.6% 7.7% 7.9% 7.7% 9.4% 9.5% 12.0% 11.7%
Pvt PSU Pvt PSU Pvt PSU Pvt PSU Pvt PSU
FY2017 FY2018 FY2019 FY2020 FY2021
Fire Marine, Engineering and Liability Motor Health Crop All other misc
Based on GDPI of private and public general insurers excluding monoline/specialised insurers.
LOB mix: Private players
As seen above, there has been a substantial reduction in business mix of motor from 49.3% in FY2017 to 45.5% in
FY2021 backed by increase in mix of fire insurance from 8.3% in FY2017 to 12.0% in FY2021 and health insurance
business from 11.4% in FY2017 to 16.5% in FY2021.
LOB mix: PSU players
As seen above, similar to the trend for private players, there has been a substantial reduction in business mix of motor
from 39.4% in FY2017 to 32.3% in FY2021 backed by increase in mix of fire insurance from 8.4% in FY2017 to 11.7% in
FY2021 and health insurance business from 32.0% in FY2017 to 38.0% in FY2021.
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C. Distribution channel mix
Channel Mix Trend FY 2017 to 9MFY2021
32% 31% 33% 33% 36%
26% 26%
28% 28%
29%
6% 7%
6% 6% 5%
6% 4%
7% 7% 5%
30% 30% 27%

26% 26%
FY2017 FY2018 FY2019 FY2020 9M FY2021
Individual agents Corporate Agents-Banks Corporate Agents -Others Brokers Direct Business
Based on GDPI for private and public general insurers excluding monoline/specialised insurers.
Source: Public disclosures
As can be seen above, substantial shift observed in distribution mix towards direct business from 32% in FY2017 to
36% in 9MFY2021. Agency mix is down from 30% in FY2017 to 27% in 9MFY2021.
d. Regulatory changes and implications thereof

Some of the key regulatory initiatives taken by IRDAI during the year are summarised below:
Disclosure of Underwriting philosophy of offering Insurance coverage to Persons with Disability (PWD) and
people affected with HIV / AIDS and Mental illness diseases by Insurers
Insurers need to publish on the website their underwriting philosophy and approach with regard to offering insurance
coverage to PWD, Persons affected with HIV / AIDS and Persons affected with Mental Illness.
Loss of Job / Income Cover
Insurers have been advised to design and develop loss of job / income covers for risks of involuntary unemployment
arising out of situations similar to what the country has been going through to suit the protection needs of the
affected groups.
Withdrawal of Long-term Motor Package policies
Long-term Package Policies (Own Damage and Third Party) for three years and five years, for four-wheelers and two-
wheelers respectively, have been withdrawn with effect from 1 August 2020.
Guidelines on Public Disclosures by Insurers
Insurers have been asked to disclose qualitative and quantitative parameters of the health services rendered to the
policyholders via Third Party Administrators (TPAs) on their website.
Standards for hospital in the network providers - Disclosure of Quality Parameters
Insurers have been asked to disclose details with respect to medical infrastructure of hospitals, number of doctors,
other medical staff, etc. of the network providers engaged for rendering cashless services to the policyholders.
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Telemedicine Guidelines
Insurers have been advised to allow telemedicine wherever consultation with a medical practitioner is allowed in the
terms and conditions of policy.
Guidelines on Individual COVID-19 Standard Health Policy
Insurers have been asked to mandatorily offer Individual COVID-19 Standard Health Policy having base cover offered on
Indemnity basis with tenure of 3 ½ months 6 ½ months and 9 ½ months.
Guidelines on Standard Individual Health Insurance Product
Insurers have been allowed to offer minimum sum insured less than `100,000 and maximum sum insured greater
than ` 500,000 in the multiples of ` 50,000, for “Arogya Sanjeevani Policy”.
Provision for Cashless Facility to Policyholders
Insurers were asked to ensure that cashless facility is provided by empanelled network providers, policyholders are
informed about the same and grievance mechanism is put in place for denial of cashless facility.
Guidelines on settlement of claims on treatment at ‘make-shift or temporary hospitals
A make-shift or temporary hospital permitted by Central / State Govt would be regarded as a hospital or a network
provider and insurers should settle the claims subjected to applicable norms.
Filing of “Arogya Sanjeevani Policy” as group health insurance product:
Insurers are allowed to offer the offer Arogya Sanjeevani Policy, subject to other terms and conditions, and sum
insured need not be in multiples of ` 50,000.
Guidelines on Wellness and Preventive Features
Norms have been prescribed on wellness features / benefits. These are in supersession of guidelines prescribed under
Chapter VII of the Consolidated Guidelines on Product Filing in Health Insurance Business.
Issuance of Electronic Policies and Dispensing with physical documents and wet signature on the proposal
form in respect of Health Insurance and few general insurance products
Exemption was granted to insurers from the requirement of (a) issuing policy document and (b) copy of the proposal,
in physical form subject to various norms for period up to 31 March 2021, which was subsequently extended to 30
September 2021.
Video Based Identification Process (VBIP)
With an intent to simplify the process of KYC and to leverage various electronic platforms and to make it customer
friendly, use of “Video Based Identification Process (VBIP)” has been permitted.
Norms on Renewability, Portability and Migration of Standard COVID Specific Products
Option has been provided to allow renewal, migration and portability for Covid Specific Products “Corona Rakshak
Policy”, “Corona Kavach Policy” and “Group Corona Kavach policy”.
IRDAI (Minimum Information Required for Investigation & Inspection) Regulations, 2020
Minimum information required to be maintained by insurers, intermediaries or insurance intermediaries for the
purpose of conducting inspection / investigation have been prescribed.
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Disclosure of benefit / premium illustration for Health insurance policies issued on floater basis
Mandatory disclosure requirements have been prescribed for benefit illustration with regards to the prospectus of
health insurance products offering of individual and family floater options and Customer Information Sheet of the
respective products.
Amendments to the Guidelines on Information and Cyber Security for Insurers
Revised guidelines have been provided with respect to Information Security Audit. Assurance Audit needs to be
conducted annually for each financial year and a specific quarter of the FY needs to be indicated for conducing such
audit when subsequent audits need to be conducted every annually.
Guidelines for Standard Products for Fire and Allied Perils
Standard products have been prescribed under the Retail Category for the three identified segments viz (a) Bharat
Griha Raksha (meant for Home Building and Home Contents), (b) Bharat Sookshma Udyam Suraksha (meant for
enterprises where the total value at risk is up to ` 5 Crore) and (c) Bharat Laghu Udyam Suraksha (meant for
enterprises where the total value at risk is more than ` 5 Crore and up to ` 50 crore). This is mandatory with effect
from 1 April 2021.
Communication on “Service Level Agreement / MoU with Network Hospital on treatment cost of COVID-19”
All insurers should enter into MoU / SLA with Network Providers on treatment cost of COVID-19 similar to
other diseases to facilitate cashless facilities on the basis of package rates similar to provisions of Health
Insurance Regulations.
Modified guidelines on product filing in health insurance business
Following categories of the individual products or add-ons or riders of health insurance business are permitted to be
launched through Use and File Procedure by duly complying with the norms specified in these guidelines.
a. Personal Accident insurance products

b. Overseas Travel insurance products
c. Domestic Travel insurance products
d. Benefit Based health insurance products
Issuance of digital insurance policies by insurance companies via Digi locker:
All insurers are required to enable their IT systems to interact with Digi-locker facility of Govt of India to enable
policyholders to use Digi locker for preserving all their policy documents and enhance customer experience.
Guidelines on Standard Personal Accident Insurance Product
Insurer shall mandatorily offer standard Individual Personal Accident product as prescribed, from 1 April 2021 onwards.
Communications on basic information on health insurance policies to the policyholders
Insurers are required to send communication to health insurance policyholders about the basic information on
their health insurance policy including the policy details, balance sum insured, etc. on periodic basis and after
settlement of each claim.
Facilitation by Insurers for vaccination of COVID-19 for Policyholders
Insurers have been directed to participate in the vaccination drive against COVID-19, to be active in communicating
about vaccination with the policyholders via emails, SMS, send reminder for 2nd shot, etc.
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Business Continuity Plan
Insurers are now required to have a Board approved Business Continuity Plan in the format prescribed by the Authority.
e. Industry outlook
The non-life insurance market in India is the 4th largest market in Asia and 15th largest globally. While Government’s
policy of insuring the uninsured has gradually pushed insurance penetration in the country through proliferation
of insurance schemes, the non-life Insurance penetration in India is only around a fourth of global averages in 2019 as
can be seen below (Source: Swiss Re).
Significantly underpenetrated
Premium as a % of GDP (CY2019)
8.51
4.95
2.67
2.31 2.31
2.01 1.78
0.97 0.94
0.58
USA South South UK Japan China Brazil Russia India Indonesia
Korea Africa
The insurance industry faces a truly unique moment in its long history. The fundamental disruption caused by the
COVID-19 pandemic equates to an opportunity for the industry to remake itself in line with new societal realities
and market needs. While the insurance industry like most other industries globally will see a significant impact from
COVID-19, this may be an inflection point for the industry with customers realising the importance and need for
Insurance, especially health.
The healthcare and fire protection helped the Indian general insurance industry report a tepid 5% growth for the last
fiscal even as the dominant motor and crop insurance segment shrank due to lockdowns.
While FY2022 could be another year of tepid growth as the next wave of COVID infections continue to cause disruption,
the next few years outlook is bright due to:
Strong GDP growth expected for India vs. other developed and emerging markets
Demographic advantage of young population driving high consumption
Growing awareness for need for protection especially health, home, etc.
Very low insurance penetration.
f. Opportunities
Economic growth: While there would be a slowdown on account of COVID-19, the Indian economy with its strong
fundamentals is still likely to remain amongst the fastest growing and possibly the least affected by global turmoil. As
per the World Economic Forum, by 2030, the economies of top 5 cities in India will be comparable to those of middle-
income countries today (like Vietnam, Philippines, Malaysia).
High middle-income and high consumption economy: As per the World Bank “As the world’s third largest economy
in purchasing parity terms, India aspires to better the lives of all its citizens and become a high-middle income country
by 2030”. Rising income levels will result in demand for better living habitat, water, sanitation, education, healthcare
and the need for insurance.
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Demographic advantage and low insurance penetration: Demographic factors such as large and growing
population, growing middle class, high mix of working population and young insurable population and growing
awareness of the need for insurance will support the growth of Indian insurance space. Further, very low premium
per capita versus other developed/developing economies indicates significant opportunities for the insurance sector
to expand. India’s non-life insurance sector is amongst the top 15 in the world and is expected to increase at a CAGR
of 12-15% over the next five years (pre COVID-19 assessment). India currently accounts for less than 1.1% of the
world’s total non-life insurance premiums despite being the second most populous nation. (Source: IRDAI Annual
Report and IBEF).
Government thrust: Governments on going push on insurance through various schemes such as the National Health
Protection Scheme that was launched under Ayushman Bharat or the Pradhan Mantri Fasal Bima Yojana (PMFBY)
that was launched for farmers, continues to give a thrust to insurance penetration. Thrust on launching standardised
insurance products will also enable growth especially across segments which are wary of complex product features.
g. Risks and threats
Continued low insurance awareness and penetration: Insurance industry could continue to face challenge of low
awareness and the need for insurance resulting in low insurance penetration.
Extended impact of COVID-19: An unexpected outcome of the ongoing Pandemic could have far reaching
implications through stresses on businesses leading to job losses that could lead to slowdown in consumption. While
COVID-19 could positively impact health insurance in long term it could have a negative impact on insurance sales
linked to consumption such a car sales, etc.
Disruption of business models by technology and data driven companies: World over, large scale distribution
models (such as insurance) are facing disruption from entities that maximize the use of data. Data backed by
analytics and use of technology is expected to change the distribution landscape in the years to come. With the
traditional business models being used by most insurers in India, it is likely that the competitive landscape will change
significantly thus warranting Companies to strategize in such a way that they can provide the best value proposition to
the largest set of customers in the most convenient manner.
Enhanced FDI limits: With the enhancement in FDI limits for insurance sector in India to 74% with and the
limited capital requirements within the non-life industry, we could see a spurt of new entrants which may
enhance competition.
B. Business overview
1. Company strategy
a. Growth with profitability
The Company has always focussed on growing profitably rather than compromising on profitability at the cost
maintaining market leadership on top line. It does so consistently through, (a) robust and prudent underwriting
practices, (b) profitable & diversified portfolio of products & solutions, (c) generation of cash flows through strong
retention of premium and judicious investments of the proceeds and (d) focus on high quality and efficient customer
service and claims experience through use of technology.
Accordingly, the Company has been amongst the top performing general insurers consistently on both top and bottom
line amongst the private players, over the past decade.
b. Diversified and largest distribution, with a diverse business mix and a diversified product portfolio
The Company endeavours and continues to maintain a healthy mix of business across various distributors and product
lines. This helps the Company tide over business cycles that may impact one line of business or distribution.
The Company has one of the largest distribution across the industry with a large network of institutional partners like
banks, NBFC’s, motor dealers and individuals including agents, POS and our proprietary Virtual Sales Officers.
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In addition, we continue to maintain a diversified product portfolio to address varying insurance needs of the
customers while maximizing value to our three key stakeholders i.e. Customer, Distributor and the Shareholders.
c. Retail orientation
While the Company continues to invest in all available market opportunities, the endeavour is to always maintain a
high proportion of retail business mix to avoid over dependence on any customer segment and to maintain high level
of profitability.
d. Robust underwriting and risk practices
We manage risk as culture which encompasses across the organisation. Our rewards programs across the organisation
ensure the sufficient weightage is given to both top line and bottom line hence ensuring a well-balanced and idle risk
reward structure. The Company maintains a very effective multi-layer reinsurance program which seeks to optimize
the retention of risk at each policy level as well as at the level of lines of business. The limits under the treaties are set
based on accumulation of risks by location and category, after considering the exposure based on Probable Maximum
Loss, where applicable, and the expected frequency of claim events. Any catastrophe risk is mitigated by a separate
non-proportional reinsurance treaty, which limits the Company’s exposure to any single covered event. The reinsurers
chosen are most highly rated and rated few notches above the regulatory mandate. Our robust underwriting and
reinsurance guidelines prevent any over-exposure to a single loss event and exposure to claim payments for perils that
were never intended to be insured. Detailed reserving guidelines are in place and the adequacy of reserves is tested
from time to time and monitored by the Reserving Committee.
e. Best in class customer service
Our theme of “Caringly yours” lays the foundation of customer obsession through innovations in customer experience
and we strive to be the best claims paying general and health insurer. Our best in class customer service is
continuously tracked through our highest Net Promoter Scores, amongst highest claims settlement ratio and claims
settlement efficiency ratio and lowest grievance ratios.
f. Endeavor to continuously invest in new engines of growth
With the objective of being ahead of the market we continue to reinvent the wheel and challenge our distribution to
identify newer engines for growth such as the Virtual Sales Office model that we pioneered and is now replicated by
many in the industry, POS (Point of Sale), Village Insurance Network (VIN) and the Health vertical.
g. Digitalization to maintain competitive edge
Digital assets and smart process enabled business delivery are the DNA of the Company. We have been operating in
a two-speed model (running BAU and Transformation parallelly ensuring agile, innovative initiatives move forward
quickly without being hampered by the checks and balances that are needed to maintain business-critical and
BAU IT and operations). RUN, TRANSFORM and INNOVATE is our operating model for delivery of technology and
operational processes.
Our digital strategy has been significantly scaled up in the Covid year which has been enumerated below:
Investments made in the last few years in Digital capabilities for issuance, renewals, claims and other
servicing – resulted in exponential % increase in adoption of these capabilities across our Customer,
Intermediaries and Employees in a difficult year where touchless and contactless was the prevalent
theme. All our 10,000+ employees and thousands of intermediaries and partners were enabled to WFH (Work
from Home) prior to the national lockdown announced on 23 March 2020. Tools such as CRM for single view of the
customer providing omnichannel services, BOING – our AI enabled self-service BOT across popular mediums like
WhatsApp, our Intermediary app and portal - Ezeetab and iMitra, our Customer app - Caring Yours App, were some
of the capabilities which were widely adopted and used through the year.
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During FY2021, our Core Transformation programs to build the BAGIC of the future picked up speed including
taking some of our retail lines of business-like Travel and Health to our new policy administration system (TCS
BaNCS on AWS Cloud). The capabilities delivered with this release and the ones in the pipeline in FY2022 will
create fundamental competitive differentiators for BAGIC in the years to come.
Our Cloud migration was accelerated with 40% of our workloads migrated to the multiple cloud environments.
Security, especially cyber security for both on premise and cloud deployments continues to be a big area of focus
for us, including our investments in tools, processes and people awareness.
Data and Analytics journey took big strides in terms of deployment of an omnichannel CRM platform across
points of service, creation of datalake with 5000+ attributes across internal and external data and with both
structured and unstructured data, creation of single BAGIC Customer and Household id, enabling of analytics
workbench and starting on our journey of data science with 20+ live AI/ML models across fraud management,
claims, renewals, customer churn, underwriting etc.
BAGIC continued to innovate at scale with capabilities like AI enabled BOT BOING which serviced 10 lac+
service requests, our customer facing app Caring Yours App crossed 1 million downloads (600,000 downloads in
FY2021 ), our app for the farming community Farmitra scaled new heights (3.48 lac downloads, 1.1 lac farmer
claims processed through the app).
2. Performance overview: FY2021

a. Business growth and market ranking
In terms of GWP, the Company’s growth was at -1.6% (8.2% for H2FY2021) as against the market growth of 2.0%
(Private and Public multiline players). However, as depicted below, the Company caught up in H2FY2021 with a growth
of 8.2% as against market growth of 5.5%. The Company maintained its 2nd rank during FY2021 with a market share of
6.3% which moved down from 6.8% in FY2020. However, for the first time we were able to move a rank ahead of a
PSU insurers which has been in existence for over 75 years as against two decades of operations for us.
BAGIC Gross Written Premium (` In Crore)
12,780 -1.6% 12,570
7,086 -9.6%
6,409 8.2 %
6,161
5,694
H1FY2020 H1FY2021 H2FY2020 H2FY2021 FY2020 FY2021
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b. Claims ratio
Claims ratio for the Company for FY2021 was 68.5% as compared to 70.7% in FY2020.
Lower claims ratio is attributable to (a) Low OD claims on account of the COVID-19 pandemic-related lockdown. The
lockdown led to a decline in motor claims as vehicles were not plying on the roads and (b) lower crop claims ratio
from 92.0% in FY2020 to 68.0% in FY2021 largely attributable to favourable Kharif season claims in FY2021.
Claims & Expenses Ratio
70.7%
68.5%
30.1% 28.4%
FY2020 FY2021
Claims Ratio Expense Ratio
Expense Ratio = (Net Commission + Operating Expenses)/Net Written Premium
c. Expense ratio
Decrease in Expense ratios is largely attributable to lower management expenses (operating expenses related to
insurance business) and net commission expenses. Management expenses declined in FY2021, given several cost
rationalisation initiatives undertaken by the Company, relatively lower provisioning for increments, reduction in the
employee base and the impact of lockdowns on office running expenses as the Company encouraged employees to
work from home.
d. Grievance ratio and Net Promoter Score (NPS)
During the year, number of grievances registered were 1,748 with a grievance ratio of 0.71 per 10,000 new policies
issued (amongst the lowest against the all the leading insurers in the country).
We also continue to maintain amongst the highest NPS of 65 for Motor and 63 for Health, which we believe is the
highest in the industry.
e. Profitability – COR, Underwriting profits, Profit after Tax and ROE
The Company’s COR moved down from 100.8% in FY2020 to 96.9% in FY2021 largely on account of the lower claims
and expense ratio as has been explained above.
The Company registered an underwriting profit of ` 237 crore in FY2021 as against a loss of ` 11 during FY2020.
The Company earned a profit after tax of ` 1,330 crore during FY2021 as compared to the profit of ` 999 crore for the
previous year; a growth of 33.2%.
Consequently, the ROE (excl fair value) of the Company moved up from 18.1% in FY2020 to 20.3% in FY2021.
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f. Strong Assets Under Management (AUM) and Solvency
The Company remains well capitalised and maintained very high levels of solvency throughout the year. The solvency
ratio as at 31 March 2021 stood at 345% (31 March 2020: 254%) which is well in excess of the required solvency
margin of 150%.
The AUM for the Company grew by 23.5% in FY2021 to end at ` 23,150 crore at 31 March 2021 up from ` 18,746 crore
at 31 March 2020.
Assets Under Management Solvency %
23,150
345%
18,746
254%
FY2020 FY2021 FY2020 FY2021
g. Brand performance - Brand Transition: Caringly yours
Following the brand re-orientation to “Caringly Yours” last year, the new identity that aims at shifting the category
narrative from transaction to engaging, has been embedded across touch points.
The brand continued to sustain high level of visibility and engagement on social media through several innovative and
relevant campaigns during the pandemic including #CareWillOvercome and #contactlesscare. High frequency of LIVE
Streaming sessions on social media platforms conducted by leadership teams helped built customer connect while
building thought leadership in varied domains of business. The brand promotion to support Crop business and POS
vertical through 18,000 outlets has helped built brand visibility in remotest pockets of the country.
To cater to the increasing Indian Language Internet Users, the Company launched Hindi and Marathi websites. Further,
as a consequence of robust Search Engine Optimization (SEO) initiatives, an efficient UI/UX website, improved page
speed scores, deployment of Accelerated Mobile Pages (AMP) have impacted the website traffic growth of 27% over
last financial year, to 55 Million. BAGIC has a lead position amongst its peers in terms of engagement rate across all
social media platforms including Facebook, Instagram, LinkedIn and Twitter.
h. Internal control and its adequacy
The Company has in place adequate systems of internal control commensurate with its size and nature of business.
Board oversees the internal control governance structure. Head of departments (HOD) ensure control activities
are performed at all levels within their functions, at various stages within business processes, and over the
technology environment.
Observations of statutory, internal and concurrent auditors are presented before the audit committee for corrective
and preventive actions. A pre-audit committee is in place to go through, in great detail, each aspect impacting the
control environment. The Audit Committee deliberates upon auditors’ views on the adequacy of internal control
systems and monitors the progress of open items through action taken report. The risk management process identifies
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risks surrounding the Company’s activities. Risk management is integrated into the Company’s culture by way of an
effective policy and a program led by the senior management.
Departmental policies and procedures are an effective way to maintain a strong system of internal controls. All the
departments have documented policies and procedures of critical processes in their respective functions and ensure
operating level controls through clear delegation of authority and segregation of duties.
The financial reporting control framework reasonably assures that the Company’s financial statements are reliable and
prepared in compliance with the accounting standards as prescribed in the Companies Act, 2013, in accordance with
the provisions of the Insurance Act, 1938 and the practices prevailing in the insurance industry in India.
As required under the Companies Act 2013, Company has implemented Internal Financial Control (IFC) considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India.
The Company also has established a Governance & Controls Committee (GCC) to promptly address process
improvement decisions and support in enhancing business resiliency for embracing change and create opportunities.
Various other policies and committees support a robust internal control structure which include the Whistle Blower
policy, Whistle Blower Committee, etc.
i. Material developments in Human Resources - Constantly driving towards a better future
At BAGIC, our people are curious, bold and resilient. We see challenges as opportunities and are excited by the
possibilities they offer. With a hypercompetitive external job market and growing employee career development
expectations we have rapidly upped our game through planned investment in People processes and technology. At
BAGIC we offer all our employees a defined talent value proposition to continuously challenge, enrich and fulfil the
aspirations so that they can maximize their true potential to ‘make a difference’.
During this period of pandemic, we stood strong with our core values and renewed ourselves to quickly adopt to
rapidly changing, ambiguous and turbulent environment. On one hand while we have swiftly transformed to new
ways of working, on the other hand, we have maintained strong foundation of our culture which is springboard for us
and an anchor point that doesn’t change while a whole bunch of other things are changing constantly.
In People processes, to sustain success in dynamic environment, we have balanced two vital activities very carefully
i.e. Standard HR operation and Innovation. This has helped us to run our people process with utmost care, reliability
and efficiently.
Following are few interventions that has helped us in being stable yet agile:
1. Learning Intervention:
SkillSity, an AI driven, intuitive and learner centric Learning Experience Platform was launched to deliver
personalized and democratized learning while integrating work and learning more closely with each other. With a
dynamic skills framework as foundation, the platform works on the philosophy where a learner can choose from a
plethora of content with personalized recommendations along with their preferred learning mediums like videos,
articles, podcasts, etc. The platform empowers the employees to choose what they want to learn, when they
want to learn based on their individual learning needs. This helps in driving an employee centric ‘pull’ learning
culture where ownership of learning is with the respective individual.
2. Innovation and Collaboration:

Project Economy: In order to build the right capability and deliver the projects more efficiently, we launched
‘Project Economy” - A unique intervention to promote Internal GIG culture. It is an intervention where cross
functional teams come together to work on a live business project and get recognized and rewarded based on
the business outcome. This initiative unfolds various prospects along with it, such as an Opportunity to positively
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impact the business outcome and exposure and learning of business outside the core area along with Project
management certification.
BAGICATHON as an intervention was aimed at being a platform that is free from any hierarchical, departmental
or location barrier, where employees came together to solve business issues, they are passionate about.
Virtual Bagicathon was a big bet and first of its kind across industry. The series of targeted communications
and meticulous planning along with it, helped BAGICATHON to surpass all expectations. Positioned as “creative
problem-solving platform”, a two-day Virtual Hackathon event was organized with 2000+ employees forming 200+
teams to collaborate and work upon 41 real time business problems witnessed by 7000+ people.
3. Technical competency Framework:

Another big leap in the learning intervention is introduction of Technical Competency Framework (TCF). TCF is an
enterprise wide scalable technical/functional competency framework which aims at fueling the current & future
capability development engine for BAGIC. Being developmental tool, this gives each employee an insight into the
technical skills required for their respective roles and add immense value in improving their skills and building
capabilities for the future. The combined analysis of the results from the employee assessment & manager inputs
will provides an opportunity to reflect and build upon areas of strengths and development for career management
and growth. Overall TCF shall aid in talent decisions, optimize development, mobility strategy and improve
efficiencies and productivity in the long run.
4. Performance management:
migration from Annual bonus to Quarterly incentive plan: As a performance driven organization, we believe in
continuous feedback process and high performance culture. We formalized it with quarterly evaluations and
incentives. With this, 95% of the Company is on quarterly/monthly plans. This has helped align business strategy
with goals on a continuous basis. As the market dynamics change, we are able to replicate that into quarterly
goals. For employees, they get a very sharp sense of direction and feedback. This change coincided with the
COVID outbreak, which in fact helped employees remain focused on what was expected of them. This change
positively drove transparency, requisite change in behaviors aligned to business objectives, that helped enhance
productivity and rigor for employees. This policy promotes ‘Do More, Earn More’ philosophy and entails metrics
oriented KPI assessment on individual performance. Managers are able to observe positive behavior from
employees, as the new structure empowers employees and provides clarity of earning potential based on the
level of performance. We hope this initiative along with other people offerings will serve as a powerful driver in
productivity enhancement, business alignment and retention of talent.
5. COVID management:
In these challenging times, not only have we come together to showcase care and concern for the welfare of our
employees but have also ensured the smooth functioning of the respective channels/verticals during these trying
times. We enabled the business continuity plan (full-fledged testing done a few days before the nation-wide
lockdown). Enabled work from home for most employees through availability of portable devices immediately
at start of lockdown. Multiple secure platforms for collaboration and team meetings over digital media also
made available. Our digitization of onboarding and off-boarding process helped us provide good experience to
our people. Taking a step forward, we reinforced the usage of our confidential Employee Assistance Program
(EAP) for people who needed help to manage their vulnerabilities such as anxiety, worry, panic, how to cope
with social distancing, frustration due to changed routines etc. and in an unfortunate event of employees getting
impacted by COVID-19, to take extra care of them, we extended BAGIC Home Isolation Assistance Program in
consultation with renowned experts. Complete safety measures were undertaken which included supply of masks
and temperature scanning devices to all locations, installation of foot operated multiple sanitiser dispensers
across all offices, installation of foot operated water taps in washrooms, installation of thermal scanners and UV
protection equipment.
25
C. Financial statements
a. Results from operations: Analysis of Profit and Loss and Revenue Account
The statement below summarises the Company’s Revenue and Profit and Loss accounts:
(` In Crore)
Particulars FY2021 FY2020
Gross written premium (GWP) 12,624 12,833
Less: Premium ceded 5,207 4,817
Net written premium (NWP) 7,417 8,016
Less/(add): Adjustment for change in reserve for unexpired risks (19) (190)
Net earned premium (NEP) 7,436 8,206
Income from investments (net) 1,557 1,408
Other income (excluding contribution from Shareholders’ to Policyholders’ account) 18 24
Total income 9,012 9,639
Claims incurred (net) 5,090 5,805
Commissions (net) 49 92
Operating expenses related to insurance business 2,060 2,320
Other expenses (excluding contribution from Shareholders’ to Policyholders’ account)) 43 46
Total outgo 7,243 8,263
Profit before tax 1,769 1,376
Provision for taxes 439 377
Profit after tax 1,330 999
The Company’s results from operations have been analysed below:
i. Premium income
Premium income has been analysed as follows:

(` In Crore)
Particulars FY2021 FY2020 Growth
Premium from direct business written (GDPI) (net of GST) 12,570 12,780 -1.6%
Premium on reinsurance accepted 55 53 2.9%
Gross written premium (GWP) 12,624 12,833 -1.6%
Less premium on Reinsurance ceded 5,207 4,817 8.1%
Net written premium (NWP) 7,417 8,016 -7.5%
Less: Adjustment for change in reserve for unexpired risks (19) (190) -90.1%
Premium earned (net) (NEP) 7,436 8,206 -9.4%
Premium income has further been analysed below at a segmental level.
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Segmental GWP
(` In Crore)
Fire 1,706 1,273 34.0%

Marine 166 177 -5.8%
Motor OD 2,011 2,099 -4.2%
Motor TP 2,715 3,131 -13.3%
Motor Total 4,726 5,231 -9.6%
Workmen’s Compensation 46 51 -9.0%
Public Liability 40 43 -6.3%
Engineering 226 159 42.3%
Aviation 18 26 -32.1%
Personal Accident 202 273 -26.3%
Health Insurance 2,100 2,201 -4.6%
Credit Insurance 13 12 9.4%
Crop Insurance 2,556 2,481 3.0%
Others 825 907 -9.0%
Grand Total 12,624 12,833 -1.6%
As can be seen above, the growth was largely driven by the Fire, Engineering, Credit and Crop portfolio whereas
consumption driven segments such as Motor, Personal Accident and Marine dragged due to the market conditions.
Segmental NEP
(` In Crore)
Fire 269 268 0.5%

Marine 107 117 -9.0%
Motor OD 1,818 2,024 -10.2%
Motor TP 2,543 2,865 -11.2%
Motor Total 4,361 4,889 -10.8%
Workmen’s Compensation 43 48 -8.9%
Public Liability 13 13 -4.1%
Engineering 24 29 -18.6%
Aviation 8 10 -18.0%
Personal Accident 214 244 -12.3%
Health Insurance 1,609 1,734 -7.2%
Credit Insurance 0 0 1.1%
Crop Insurance 472 538 -12.2%
Others 315 316 -0.4%
Grand Total 7,436 8,206 -9.4%
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The premium on reinsurance ceded can be analysed through the retention ratio as depicted below:
Particulars FY2021 FY2020 Change
Fire 16.4% 11.3% 5.1%
Marine 64.9% 63.6% 1.3%
Motor OD 94.4% 94.6% -0.2%
Motor TP 89.7% 94.9% -5.2%
Motor Total 91.7% 94.7% -3.1%
Workmen’s Compensation 93.3% 93.4% -0.2%
Public Liability 35.7% 31.1% 4.7%
Engineering 11.0% 17.4% -6.4%
Aviation 1.4% 41.2% -39.8%
Personal Accident 92.7% 94.1% -1.3%
Health Insurance 78.5% 75.8% 2.7%
Credit Insurance 1.0% 1.0% 0.0%
Crop Insurance 18.7% 21.1% -2.4%
Others 36.7% 28.3% 8.4%
Grand Total 58.8% 62.5% -3.7%
The decrease in retention is attributable to change in business mix and treaty changes made in FY2021.
ii. Investment income
Details of income from investments are given in the table below:
(` In Crore)
Interest, dividend and rent* 1,288 1,260 2.2%
Impairment loss 34 (129)
Interest, dividend and rent (net of impairment) 1,322 1,131 16.9%
Profit /(loss) on sale of investments (net) 236 278 -15.1%
Total income/(loss) on investments 1,557 1,408 10.6%
* includes accretion of discount/amortisation of premium
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Investment income is analysed further as follows:
(` In Crore)
Interest, dividend and rent (net of impairment)* 1,322 1,131 16.9%
Less: Dividend, etc. 22 17 29.4%
Interest Income from investments 1,300 1,114 16.7%
* includes accretion of discount/amortisation of premium
As can be seen above, interest income increased by 16.7% up from `1,114 crore in FY2020 to ` 1,300 crore in FY2021
due to increase in average debt assets under management. The table below indicates average debt investments and
average yield earned in the respective years.
(` In Crore)
Average interest earning assets 18,896 16,339
Average yield (including impairment) 6.88% 6.82%
Average yield (excluding impairment) 6.70% 7.61%
Profit and loss on sale on investments
Profits and losses on sale of investments represents the amount by which the proceeds from the sale of investments
exceeds the carrying amount of the investments that were sold. Profits and losses are booked considering the overall
market condition and available investment opportunities.
Impairment
Impairment provisions made of ` Nil (Previous year ` 129 crore). In FY2021, there was reversal of impairment provision
of ` 34.0 crore on account of sale of debt exposure in a stressed NBFC.
iii. Other income
Other income mainly includes interest income other than investment on terror retrocession pool of ` 13.5 crore
(Previous year ` 13 crore), interest on income tax refund of ` 0.3 crore (Previous year ` 8.2 crore) and coinsurance
admin charges income of ` 4.2 crore (Previous year ` 2.3 crore).
iv. Claims
Claims incurred (net) are the total claims incurred by the Company during the year including both paid and outstanding
and including Incurred but not reported (IBNR)/Incurred but not enough reported (IBNER) reserves, net of claims
recovered from reinsurance ceded. The statement below summarises the Claims incurred (net).
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(` In Crore)
Claims paid 6,063 6,737 -10.0%
Claims paid on reinsurance accepted 19 6 221.8%
Gross claims paid 6,082 6,743 -9.8%
Less: Claims recovered from reinsurance ceded 2,674 2,449 9.2%
Net claims paid 3,408 4,294 -20.6%
Add: Increase/(decrease) in claims outstanding (net) 1,682 1,511 11.3%
Total claims incurred (net) 5,090 5,805 -12.3%
The table below summarises the claims ratio for key lines of businesses:
(` In Crore)
Fire 54.5% 68.0%
Marine Cargo 66.0% 67.3%
Motor OD 54.0% 67.7%
Motor TP 78.1% 64.5%
Engineering 36.1% 52.8%
Personal Accident 44.2% 56.0%
Health Insurance 81.7% 85.6%
Crop Insurance 68.0% 92.0%
Total claims ratio 68.5% 70.7%
As can be seen above, the improved claims ratio is largely attributable to all segments except Motor TP, where
reserves were strengthened to account for delayed reporting, recent court judgement enhancing the likely outflow
and strengthening the TP Pool basis recent experience. The key segments driving better loss ratios are Fire, Motor OD
and Crop business.
v. Expenses (including commission)
(` In Crore)
Commission 49 92 -46.1%
Operating expenses related to insurance business 2,060 2,320 -11.2%
Other expenses 43 46 -5.8%
Total expenses 2,152 2,458 -12.4%
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The total expenses are further analysed below:
Commission expenses
(` In Crore)
Commission paid-Direct 795 828 -3.9%
Commission paid on reinsurance accepted 6 5 14.1%
Gross Commission paid 801 833 -3.8%
Less: Commission received from reinsurance ceded 752 741 1.5%
Commission paid (net) 49 92 -46.1%
Gross commission ratio has been stable as detailed below:
(` In Crore)
Commission paid-Direct to GWP 6.3% 6.5%
As can be seen above, while the gross commission ratio has been flattish, the lower commission paid (net) is largely
attributable to higher commission received on reinsurance ceded due to higher ceding.
Decrease in expenses has largely been driven by lower wage costs (by 16%) through productivity enhancement, lower
office running expenses (due to lockdowns and office rationalisation) and lower discretionary expenses as part of our
expense rationalisation initiatives.
Other expenses largely include CSR expenses and CEO’s remuneration.
vi. Profit
Based on the above, the underwriting profit was at ` 237 crore for FY2021 and at ` (11) crore for FY2020. The
segmental results were as follows:
(` In Crore)
Fire (1) (12)
Marine 1 (8)
Miscellaneous 237 9
Total 237 (11)
Within the miscellaneous segment the profitability was largely driven by Crop and Motor.
Profit before tax (PBT) increased to ` 1,769 crore in FY2021 from ` 1,376 crore in FY2020, an increase of 28.6%.
31
As a result of the above, Profit after tax (PAT) increased to ` 1,330 crore in FY2021 from ` 999 crore in FY2020, an
increase of 33.2% attributable to higher underwriting profits and lower NPA provisioning partly offset by lower realised
investment gains.
b. Financial condition
The following table sets forth, on the dates indicated, the summarised Balance Sheet.
(` In Crore)
At 31 March
Particulars At 31 March 2021
2020
Sources of funds
Equity capital 110 110
Reserves and Surplus 7,023 5,841
Fair value change account 392 (310)
Total Equity 7,524 5,642
Current liabilities 14,226 11,973
Provisions 4,221 4,250
Total 25,972 21,866
Application of funds
Investments
- Shareholders’ 5,786 3,213
- Policyholders’ 16,692 15,091
Fixed assets 427 430
Deferred tax assets 126 64
Cash & Bank balances 683 576
Advances & other assets 2,258 2,492
Total 25,972 21,866
Sources of funds
i. Equity capital and reserves
Equity capital
Shareholding pattern and transfer of shares
The shareholding pattern of the Company is as follows:
At 31 March 2021 At 31 March 2020
Percentage of Percentage of
No. of shares No. of shares
Particulars holding holding
Bajaj Finserv Limited 81,568,165 74% 81,568,165 74%
Allianz SE 28,659,085 26% 28,659,085 26%
Total 110,227,250 100% 110,227,250 100%
32
04-37 40-88 90-161
There has been no transfer of shares during the year and the shareholding pattern is in accordance with the statutory
and regulatory requirements. The share capital stood at ` 110 crore (same as previous year).
The Company is required to maintain minimum solvency margin (i.e. excess of value of assets over value of insurance
liabilities) at 150% as prescribed by IRDAI. The solvency margin was 345% at 31 March 2021 as against 254 %
at 31 March 2020.
Reserves and surplus
A summary of reserves and surplus is provided in the table below:

(` In Crore)
Particulars At 31 March 2021 At 31 March 2020
Share premium 167 167
Balance of profit in Profit and Loss account 6,856 5,675
Fair value change account 392 (310)
Total 7,414 5,532
The increase in Profit and Loss Account balance represents the profit generated during the year net of dividend paid
during the year.
Fair value change account represents unrealised gain/(loss) as on the Balance Sheet date on equity, mutual fund
and AT 1 bonds investments. Such mark to market treatment of equity, mutual fund securities and AT 1 bonds as on
the reporting date is in line with requirements of IRDAI (Preparation of Financial Statements and Auditor’s report of
Insurance Companies) Regulations, 2002 which require equity and mutual fund assets to be reflected at their current
fair value in the Balance Sheet and the mark to market adjustment being reflected under “Fair value change account”
on the liability side of the Balance Sheet. Movement in fair value change account is a function of performance of the
equity markets and the mix of equity and mutual funds in the portfolio.
The net-worth of the Company grew by 33.4% to ` 7,524 crores at 31 March 2021 up from ` 5,642 crore
at 31 March 2020.
ii. Current liabilities and provisions
Current liabilities
A summary of current liabilities is provided in the table below:

(` In Crore)
Amount pertaining to Policyholders’
- Unclaimed amount of Policyholders’ 6 7
- Policyholders’ claims payable 10,040 8,358
- Unallocated premium 460 453
- Premium received in advance 1,105 1,139
- Payable to Policyholders 1 1
33
(` In Crore)
Sundry creditors and payables for expenses 461 355
Solatium fund 17 14
Payables for unsettled investment contracts 140 77
Payable to agents (Agents balances) 124 114
Statutory dues and Taxes (including GST) payable 109 107
Balances due to other insurance companies 1,753 1,213
Other liabilities 11 135
Total 14,226 11,973
(a) The unclaimed amount to policyholder balance is on account of claims settled but not paid (except under litigation)
and cheques issued but not encashed by policy holders / Insured.
(b) Policyholders’ claims payable represents amounts payable to the policyholders that are intimated to the Company
and are outstanding as a part of the normal claims process or pending due to incomplete documentation
from the policyholders or pending investigations or may be under litigation. The increase in claims payable is
attributable to lower settlement of Motor TP claims in litigation which have not been settled at the same pace as
the previous year on account of courts not operating at full capacity due the lockdowns and other issues relating
to the Pandemic.
(c) Unallocated premium mainly includes amount received toward proposed insurance contract that will be recognised
as premium post underwriting or fulfilment of requirements by the customer. Large sums however pertain to float
monies kept with the Company by Group policyholders to take care of ongoing additions to the Group policy.
(d) Premium received in advance is held in accordance with the IRDAI guidelines and as per file and use and will be
recognised as premium income on the due date of the policy.
(e) Payable to policyholders indicates amount due to the policyholder which is under regular process of
being disbursed.
(f) Sundry creditors and payables for expenses represent amounts payable to various service providers towards
goods and services availed by the Company along with the provision for the services availed/goods received but
bills not received.
(g) Solatium fund - the Company provides for contribution to Solatium fund at 0.10% of total Third Party Premium of
direct business as per requirements of IRDAI.
(h) Payable for unsettled investment contracts represents amount outstanding towards investment trades of last few
days that are not due for settlement.
(i) Agents’ balances represent amount payable to agents towards commission as on the Balance Sheet date.
(j) Taxes payable represent tax deducted and payable under various tax rules and regulations, such taxes will be paid
in due course within their due dates.
(k) Balances due to other insurance companies primarily indicates payables to reinsurers under various reinsurance
arrangements (` 1,736 crore) and payable to other insurers towards coinsurance contracts (` 17 crore).
(l) Other liabilities primarily include bank overdraft as per the books of accounts.
34
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Provisions
A summary of provisions is provided in the table below:
(` in crore)
Reserve for unexpired risk 4,166 4,185
Premium deficiency 0 0
Income tax 14 20
Provision for leave encashment, long term incentive plan and gratuity 42 45
Total 4,221 4,250
Reserve for unexpired risk represents that part of the net premium (i.e., premium, net of reinsurance ceded) which
is attributable to, and set aside for subsequent risks to be borne by the Company under contractual obligations on
contract period basis or risk period basis, whichever is appropriate, subject to a minimum of 100% in case of Marine
Hull business and in case of other lines of business based on net premium written on all unexpired policies at Balance
Sheet date by applying 1/365th method on the unexpired period of respective policies.
Company’s liability towards leave encashment, long term incentive plan and gratuity is actuarially valued and is as per
the requirements of revised Accounting Standard 15 (Revised) on Employee Benefits.
Application of funds
i. Investments
A statement of total investments made by the Company is given below:
(` In Crore)
Investments
- Shareholders’ 5,786 3,213
- Policyholders’ 16,692 15,091
Total 22,477 18,305
Total investments grew by 22.8% from ` 18,305 crore as at 31 March 2020 to ` 22,477 crore as at 31 March 2021.
35
ii. Fixed Assets
A statement of movement of fixed assets is given below
(` In Crore)
Gross block 700 694
Less: Accumulated depreciation 298 275
Net block 402 420
Add: Capital work in progress 25 10
Net fixed assets 427 430
iii. Deferred Tax asset (net)
Deferred tax assets carried in the books comprise of:
(` In Crore)
Deferred tax asset
Timing difference on account of -
Reserve for unexpired risks 94 22
Employee Benefits 3 3
Long Term Incentive Plan 8 9
Provision for doubtful debts 1 1
Solatium fund 4 4
Provision for diminution in value of Investments 38 47
Total 148 85
Deferred tax liability
Depreciation as per section 32 of Income Tax Act, 1961 (21) (21)
Net deferred tax asset 126 64
36
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iv. Cash, bank, advances & other assets
A summary of current assets, loans and advances is provided in the table below:
(` In Crore)
Cash and bank balances 683 576

Advance tax and TDS 42 71
Income accrued on investments 549 483
Assets held to cover unclaimed funds 10 10
Outstanding premium 1,235 1,271
Dues from entities carrying on insurance business 92 242
Unsettled investment contract receivable 0 74
GST/Service tax unutilized credit 190 191
Deposits 27 32
Prepayments 22 10
Other advances and receivables 91 107
Total 2,941 3,068
(a) Cash and bank balances represent amounts collected during last few days of the financial year and includes
cheques on hand and cheques deposited but not cleared.
(b) Advance tax and TDS (net of provisions) indicates advance tax paid and amounts paid to the Tax Authorities
under protest for matters in Appeal.
(c) Income accrued on investments represents interest income accrued but not due as at 31 March 2021.
This largely pertains to interest on fixed deposits, Government securities and debentures. The increase is
attributable to the increase in the debt investments of the Company.
(d) Assets held to cover unclaimed funds are assets segregated for unclaimed policyholders and invested in
money market instruments in line with the IRDAI regulations.
(e) Outstanding premium represents premium income accrued and due. These largely pertain to the Crop business
where monies are due from the Central and State governments.
(f) Dues from entities carrying on insurance business include dues from coinsurers (` 73 crore) and
reinsurers (` 19 crore).
(g) Unsettled investment contract receivable represents amount receivable from counter-parties for investment
trades done on the last few days of the year where settlement is not due.
(h) GST/Service tax unutilized credits represent the credit of GST/service tax available with the Company which
can be used to offset the GST/service tax liability of the Company. Most dues pertain to GST dues by vendors
that have not been updated on the GST portal.
(i) Deposits represent deposits placed for premises taken on lease as well as for leased accommodations for
employees. It also includes deposits to service providers for electricity, telephone and other utilities services.
(j) Prepayments includes amounts paid in advance as per contractual terms with vendors for services to be
utilised in the future.
(k) Other advances and receivables primarily include advances made in the ordinary course of business
for services to be availed in the future. It also includes other tax receivables (paid under protest) and
recoverable from agents.
37
sTATUtORY
ReportS
DIRECTORS’ REPORT
Your Directors have pleasure in presenting their Twenty First annual report and audited financial statements for the
financial year ended 31 March 2021 (FY2021).
Industry update
After recording approximately 17% growth rate in Gross Written Premium (GWP) in the last 5 years, the general insurance
industry in India was faced with one of its most challenging years. As the national lockdown was announced towards the
end of FY 2020, the year started with the economy at a near standstill. The Company focused on the immediate steps to
tackle the pandemic focusing on well-being of employees, enabling work-from-home, providing customers with facilities
to report claims and keep their policies renewed and so on.
The business impact of the lockdown and the pandemic was somewhat mixed. Production and sales of automobiles
across all segments – two wheelers, private cars and commercial vehicles were down for several months in the wake
of the lockdown. The motor segment represents over 45% of the industry’s gross premiums and hence this had a major
impact on industry growth. Travel had come to a standstill and, correspondingly travel insurance segment also suffered
negative growth for much of the year. On the other hand, there was a spurt in demand for health insurance policies for a
few months, especially COVID-specific policies. From Q3 onwards, businesses started to revive and, by the end of the year
many segments had reached pre-COVID levels in terms of growth though the recovery in a few segments like passenger
carrying commercial vehicles is still yet to gain full momentum.
On the claims front, lower frequency of accidents in motor insurance and non-COVID health insurance claims were positive
events which were partially offset by a significant occurrence of COVID claims in health insurance segment. Average claim
sizes started moving up for motor and non-COVID health claims as the recovery started.
Your Company further strengthened its business continuity plan based on its experience of handling the lockdown.
As of the date of this report, while the COVID-19 vaccination efforts have gained momentum, uncertainty due to the
resurgence of COVID cases across many parts of India is rising. Localised partial lockdowns have been announced. While
your Company is significantly better prepared to handle a further lockdown than before, a complete national lockdown
is bound to have an effect on the industry and your Company. Your Company’s financial position in terms of Net Worth,
Solvency margin, Assets Under Management and liquidity are better on 31 March 2021 as compared to 31 March 2020.
The year also saw a better than average monsoon and lesser major catastrophes as seen in the recent few years, besides
cyclone Amphan.
Despite such challenging circumstances on all fronts and inspite of sharp decline in GWP in the first half of FY2021, the
industry posted growth of 5.2% for FY2021. This was largely driven by growth in Health and Property. As against this, your
Company posted growth rate of -1.6% for FY2021 (8.2% for H2). Your Company’s growth during the year was lower than
the industry due to depressed sales of highly profitable passenger carrying commercial vehicles for most part of the year
where the Company had higher exposure than market and which also led to better than industry profitability for your
Company in the past few years.
The growth rates in gross direct premium in India (Gross written premium less reinsurance accepted) for the industry and
for your Company, are shown in the following Table:
40
Directors’ Report for the financial year ended 31 March 2021 Corporate Overview Statutory Reports Financial Statements
04-37 40-88 90-161
Gross direct premium in India - the general insurance industry

(In ` Crore)
Gross premium
Particulars FY2021 FY2020 Growth%
BAGIC 12,570 12,780 -1.6%
Private Sector 98,014 93,266 5.1%
Public Sector 71,826 73,263 -2.0%
Industry total 169,840 166,529 2.0%
Standalone Health Insurers (SAHI) 15,720 11,951 31.5%
Industry Including SAHI 185,560 178,480 4.0%
Specialized Insurers 13,175 10,437 26.2%
Industry including all 198,735 188,917 5.2%
*Source: GI Council figures, IRDAI website and IRDAI.
Your Company continues to participate in the crop insurance and government health insurance business, which is largely
tender driven and adds to volatility. Its market share for FY2021 was 6.3% as compared to 6.8% in FY2020.
Key events impacting the Company

COVID-19: Steps taken to tackle the impact of the national lockdown
Your Company carries on business operations through a wide network of its branches and branches of its distribution
partners, aided by virtual sales officers in scores of town and semi-urban centres. The lock-down in the second half of
March 2020 led to disruption of normal business operations as the entire economy came to standstill for a while.
General and Health Insurance is still largely sold either by the insurance Company directly or through individuals and
institutional distribution partners. This essentially involves face to face interaction, which was simply not possible in a
lockdown situation for the first half of FY2021.
The priority was to ensure the well-being of employees. The Company took the following steps to ensure the same:
Enabled the business continuity plan (full-fledged testing done a few days before the nation-wide lockdown)
Enabled work from home for most employees through availability of portable devices immediately at start of
lockdown. Multiple secure platforms for collaboration and team meetings over digital media also made available
Health support hotline created for employees with doctor on call
Complete safety measures taken which included supply of masks and temperature scanning devices to all locations,
installation of foot operated multiple sanitiser dispensers across all offices, installation of foot operated water taps in
washrooms, installation of thermal scanners and UV protection equipment.
Having a robust IT infrastructure enabled your Company to activate Work-from-Home for employees support the needs
of customers, distributors and other partners of the Company. Your Company was able to deliver on all processes even
in remote working conditions, including policy issuance, policy servicing, claims management, surveys, assessments,
settlements as well as support functions like accounting, human resources etc. Efforts were put in to channelize business
flow and operational activities to online modes.
Customer-facing services, face to face meetings for new business and renewal collections were impacted initially due
to the lockdown. However, with faster pace of digitisation your Company was able to quickly implement its Business
Continuity Plan within a very short time. Virtualisation projects, work from home enablement along with other alternate
41
arrangements for business continuity were implemented on priority. The Company also launched innovative tools like
‘Digi-swasth’ - ‘Tele-MER’ and provided applications and communication platform to ensure smooth onboarding as well
as service for its customers, distributors and employees. Journey on cloud-based architecture continued with launch of
hospital portal ‘eCARE’, increasing contactless customer servicing, claims processing and progress in implementing new
policy administration system – Maximus, etc.
Enhanced usage of IT enabled remote working environment also called for enhancement of cyber security measures,
which were suitably implemented and as a result the Company has been able to sail through all attempts on the integrity
of its IT infrastructure. Continuous training and communication helped employees, partners and agents to quickly learn and
implement all the process changes during what has been touted as new normal.
Change in Crop Insurance Guidelines

The revised crop insurance guidelines have come into effect from 1 April 2020, whereby a) the scheme has become
voluntary for loanee farmers, b) mandatory allotment of districts / clusters takes place for three years, and c) there is
restriction on subsidy from the Centre to States. Your Company was able to capitalise on the regulatory changes and could
garner Gross Written Premium (GWP) of ` 2,556 crore from crop insurance in FY2021.
Business update
Your Company has a strong focus on growing its retail business. While the total portfolio of the Company includes motor
insurance, health insurance for individuals, other personal lines of insurance, insurance for commercial entities like shops,
SMEs, etc., it also continues to participate in annual tender-driven businesses like crop insurance and government health
schemes. Your Company continued its journey of growing profitably. Even in the most difficult year, it did so through
robust and prudent underwriting practices, generation of cash flows through strong retention of premium and judicious
investments of the proceeds and focus on high quality customer service.
Your Company continues to be among the more profitable general insurers vis-a-vis peers in the public and private sectors
of comparable size. Combined ratio of 96.9% in FY2021 is expected to be one of the lowest in the industry, reflecting a
sound balance between growth and profitability.
Motor, property and retail health insurance are the major focus areas, with 61% of gross premium coming from these lines.
Your Company maintains one of the largest distribution networks through tie ups with banks, NBFCs, individual agents,
MISPs, POSPs and the Company’s proprietary Virual Sales Offices. Your Company continued to expand its network of
independent bancassurance partners including private banks, public sector banks, regional banks, small finance banks and
cooperative banks. The Company has the strongest network of bancassurance partners among all insurers and this channel
is expected to provide strong momentum for growth and profits in the coming years. During FY2021, your Company tied
up with 15 new corporate agents, renewed its long-standing relationships with Canara Bank, several co-operative and
medium sized commercial banks and NBFCs and also secured entry into many automobile brands in two-wheelers, four-
wheelers as well as commercial vehicles segments.
Business performance during the year

Your Company’s GWP, including reinsurance accepted, for FY2021 was ` 12,624 crore as compared to ` 12,833 crore during
the previous year, de-growth of 1.6%. Excluding the bulky crop, group health and government health insurance, GWP
de-grew by 1.7%. The Net Earned Premium, which measures the premium retained after reinsurance and reserves for
unexpired risks, de-grew by 9.4% at ` 7,436 crore as against ` 8,206 crore during the previous year. The Combined Ratio
for FY2021, as defined by Master Circular on ‘Preparation of Financial Statements of General Insurance Business’ issued by
the IRDAI, stood at 96.9%.
Your Company continued to retain the second position in terms of the top-line in the private sector. The market share in
the industry was 6.3% in FY2021 compared to 6.8% a year earlier. Your Company continues to pursue efforts to retain
renewal business, without compromising quality of risk and minimum profitability benchmarks. Your Company sold around
2.5 crore policies during FY2021 as compared to 2.69 crore during the previous financial year. The number of claims
reported in FY2021 were 37.7 lakh as against 57.7 lakh reported during FY2020.
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04-37 40-88 90-161
Investments and Investment Income

The investment duration of the portfolio is actively monitored, keeping in mind the duration of liabilities, through an
Asset Liability Management model as well as aligning the same with the solvency position. Your Company’s investment
philosophy is based on strong cash generation, backed by prudent investment of surpluses keeping in mind the obligation
to pay claims when they arise.
Your Company’s investment portfolio remains strong and where there has been delays in repayment, the Company had
made provisions for impairment in previous years. During the year, your Company has reversed ` 34 crore due to better
outlook for the investee companies as well as better realisation on sales.
The assets under management as at 31 March 2021 stood at ` 23,150 crore as against ` 18,746 crore as at 31 March 2020,
an increase in investible surplus by ` 4,404 crore or 23.5%. The investment and other income(net) for FY2021 was ` 1,533
crore as against ` 1,386 crore in the previous year.
Profit
Profit before tax (PBT) during FY2021 was ` 1,769 crore as compared to ` 1,376 crore during the previous financial
year. The profit after tax (PAT) for FY2021 was ` 1,330 crore as compared to ` 999 crore during the previous financial
year. The growth in PAT was mainly on account of superior risk selection while resisting the tendency of aggressively
gaining market share.
Profit after tax over the last five years
BAGIC's profit after tax (In ` Crore)

1,400 1,330
1,300
1,200
1,100 999
1,000 921
900
780
800 728
700
600
500
400
300
200
100
-
FY2017 FY2018 FY2019 FY2020 FY2021
Dividend
In line with the directive from IRDAI on prudent management of financial resources of insurers in the context of COVID-19,
pandemic vide circular dated 24 April 2020, no dividend was declared for FY2020. Considering the revival phase of the
economy and considering solvency position of the insurers, IRDAI has, vide its circular dated 25 February 2021, withdrawn
the applicability of the circular dated 24 April 2020. Considering your Company’s capital, solvency and liquidity positions
as well as its compliance with regulatory total expense limits, your Board of Directors (the Board), at its meeting held
on 11 March 2021, declared an interim dividend of ` 13.5 per equity share of face value of ` 10 (135%) amounting to
` 148.88 crore.
The Board recommends for consideration of the shareholders at the ensuing Annual General Meeting (AGM) the above
referred interim dividend as final dividend for the financial year ended 31 March 2021.
43
Summary of financials
(In ` Crore)
Particulars FY2021 FY2020 % Change
Gross written premium (GWP) 12,624 12,833 -1.6%

Net earned premium 7,436 8,206 -9.4%
Underwriting results 237 (11) -
Profit before tax 1,769 1,376 28.6%
Profit after tax 1,330 999 33.2%
Claims ratio 68.5% 70.7% 2.3%
Combined ratio* 96.9% 100.8%* 3.9%
Return on average equity 20.2% 18.5% 1.7%
* Combined ratio is calculated according to the Master Circular on ‘Preparation of Financial Statements of General Insurance Business’ issued by the IRDAI
effective from 1 April 2013. Without the natural catastrophe, Combined ratio for FY2021 would have been 96.3%.
Capital, Solvency and Shareholders’ Funds

The Shareholders’ equity of your Company stood at ` 7,524 crore as at 31 March 2021 as against ` 5,642 crore as at 31
March 2020. Your Company has completed 13 consecutive years since the last capital infusion and continues to be one of
the most efficient users of capital in the private sector as measured by the ratio of gross written premiums to share capital
and by gross written premiums to shareholders’ equity. Your Company has been able to improve its solvency ratio at 345%
as at 31 March 2021, which is well above the regulatory requirement of 150%.
Return on Equity
The return on average equity for your Company during FY2021 was 20.2% as against 18.5% in the previous year.
Recognition & Awards

Here is a brief highlight of some of the major awards your Company won during FY2021:
1. ‘Best Motor Insurance Provider of the Year’ at Business Today-Money Today Financial Services Awards.
2. ‘Best Digital Insurer in Asia’ at IDC Financial Insights Innovation Awards 2021 for Digi-Enroll, an automated, interactive
and customized portal for GMC Customers.
3. ‘AI in BFSI Award’ at ET Innotribe Awards for Digi-Swasth
4. ‘Celent Model Insurer Award 2021’ for SkillSity, Company’s learning platform, under Digital and Emerging
Technologies category.
Tapan Singhel, MD & CEO, was recognized as Purvanchali Achiever at the Purvanchal Festival of Art, Culture, food &
Toursim – Maati-IV.
Credit Rating
Your Company secured issuer rating of [ICRA]AAA, indicating highest degree of safety regarding timely servicing of
financial obligations and lowest credit risk.
IRDAI registration
Your Company has paid to IRDAI annual fees for FY2022 as specified by the IRDA (Registration of Indian Insurance
Companies) Regulations, 2000.
44
04-37 40-88 90-161
Directors and key managerial personnel

T S Vijayan (DIN 00043959), who was appointed as Additional Director with effect from 1 April 2020, held his office till the
date of subsequent Annual General Meeting i.e. 17 July 2020 pursuant to section 161(1) of the Companies Act, 2013 and
ceased to be Additional Director thereafter.
There was no change in key managerial personnel during the year under review.
Your Company’s Independent Directors have submitted declarations stating that they meet the criteria of independence as
provided in section 149(6) of the Act. The Independent Directors have submitted declarations to that effect that they have
included their name in data bank of independent directors pursuant to the Companies (Appointment and Qualification of
Directors) Rules, 2014, as amended. The Board is of the opinion that the Independent Directors are persons of integrity and
possess relevant expertise, proficiency and experience.
Pursuant to the provisions of the Act, Sanjiv Bajaj (DIN 00014615), Sergio Balbinot (DIN 01629245) and Tapan Singhel (DIN
03428746) Directors, retire by rotation and being eligible, have offered themselves for re-appointment as Directors at the
ensuing 21st AGM.
Annual Return
Pursuant to section 92(3) of the Companies Act, 2013, a copy of the Annual Return as at 31 March 2021 is hosted on the
Company’s website and can be accessed at https://www.bajajallianz.com/about-us.html
Number of meetings of the Board

The Board of Directors met five times during the year. Detailed information about dates of meetings and attendance of
Directors thereat is given in the Corporate Governance Report annexed to this report.
Remuneration policy
Policy on remuneration of Directors, key managerial personnel and other employees, including criteria for determining
qualifications, positive attributes, independence of a Director and other matters provided under section 178(3) of the Act, is
placed on the Company’s website https://general.bajajallianz.com/Corp/content/remuneration-policy-other-criteria.pdf
The policy is directed towards a compensation philosophy and structure that will reward and retain talent and provides
for a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the
working of the Company and its goals.
During the year under review, the policy was amended to provide for payment of profit related commission to Independent
Directors as may be approved by the Board of Directors upon recommendation of the Nomination and Remuneration
Committee within the overall limit prescribed under the Companies Act, 2013 and Insurance Regulatory and Development
Authority of India (Remuneration of Non-executive Directors of Private Sector Insurers) Guidelines, 2016, as amended.
Performance evaluation of the Board, its Committees and Directors

In accordance with section 134(3)(p) of the Act, formal annual performance evaluation of the Board, its Committees and
the Directors individually has been carried out in the following manner:
a) Survey was arranged through digital platform for each of the Directors with regard to evaluation of performance of the
Board, its Committees and individual Directors (except for the Director being evaluated) for the year under review.
b) A consolidated summary of the ratings given by each of the Directors was then prepared, based on which a
report of performance evaluation was prepared by the Chairman in respect of the performance of the Board, its
Committees and Directors.
c) The report of performance evaluation so arrived at was then discussed in the meeting of the Board of Directors.
Directors were individually communicated of their respective rating by the Chairman of the Company.
d) The Nomination and Remuneration Committee reviewed the implementation and compliance of the process of
performance evaluation.
45
Directors’ Responsibility Statement

In accordance with section 134(3)(c) of the Companies Act, 2013 (‘the Act’) the Board of Directors wishes to confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper
explanation relating to material departures, if any;
(b) the Directors have selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as
at 31 March 2021 and of the profits of the Company for that period;
(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
(d) the annual accounts have been prepared on a going concern basis;
(e) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that
such systems are adequate and operating effectively.
Related party transactions

As per section 177 of the Act, the Audit Committee of the Board of Directors approves the estimated related party
transactions of the Company at the beginning of every financial year. Related party transactions are placed before the
Audit Committee for noting on a quarterly basis. Related party transactions entered during the year under review were
in the ordinary course of business and on an arm’s length basis, thus not requiring prior approval of the Board or the
shareholders. During the year, there were no material contracts or arrangements or transactions at arm’s length basis that
needed to be disclosed in Form AOC - 2 as required under the Act. As per Accounting Standard (AS) 18 on ‘Related Party
Disclosures’, the details of related party transactions entered into by the Company are also included in the notes to the
financial statements.
Material changes and commitments

There have been no material changes or commitments affecting the financial position of the Company, which have
occurred between the end of financial year of the Company and the date of this report.
Conservation of energy and technology absorption

The Company, being an insurance Company, does not have any manufacturing activity. The Directors, therefore, have
nothing material to report on conservation of energy. However, the Company continues its efforts to implement energy
efficient solutions in various spheres of its activities such as the following:
a) LED lights installed across 112 offices (97% offices now have LED lights installed)
b) Energy efficient Variable Refrigerator Flow (VRF) air conditioning system installed at 48 locations.
The energy conservation measures during the year, half of which was affected by successive lockdowns, led to reduction
of about 34% in electricity consumption.
On tech-front, in the year gone by, digital empowerment has been the mantra to enable your Company to offer faster,
safer, efficient and better services to the customers. Shackled by limited mobility during the pandemic, the customers have
appreciated and seem to have adopted this as the new normal. Your Company has pursued go-green initiative to ensure
that processes become paperless as much as possible. Your Company’s investments in various digital assets, infrastructure
and security re-enforcements over the past couple of years stood vindicated during the year gone by.
Your Company combined a variety of digital initiatives under the Digi-Sampark program to stay connected with customers.
The program extended its reach to the customers and digital servicing peaked at an industry beating 80+%. The lightning
fast development of a COVID self-test BOT along with Social Trackback was adopted by customers wholeheartedly
46
04-37 40-88 90-161
Your Company continued its journey towards cloud adoption by migrating the retail health business to the cloud by
leveraging microservices based architecture to provide agility and scalability to the business. Realizing the importance of
offering unparalleled claims experience in health insurance, especially during this sensitive period, your Company also
launched a cloud-based hospital portal for cashless claims registration and settlement, which saw phenomenal uptake of
35,000+ claims processed in 6 months. Combined with automated, machine-vision based bill processing, your Company
was able to settle health claims in a shorter time and with higher accuracy.
Foreign exchange earnings and expenditure

Earnings in foreign currency ` 412.20 crore
Expenditure in foreign currency ` 110.94 crore
Risk management policy

A statement indicating development and implementation of risk management policy for the Company including
identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the
Company has been given in the Corporate Governance Report annexed to this report. Further details are also available in
the Management Report which is part of the Company’s Annual report.
Corporate social responsibility (CSR)

During FY2021, your Company has spent the amount as required by section 135 of the Act on CSR activities / projects in
accordance with the CSR policy of the Company. Report on CSR Policy developed and implemented by the Company along
with amounts spent on CSR initiatives taken during the year pursuant to section 134 and section 135 of the Act is given in
annexure to this report.
In line with the recent amendment to the Companies Act, 2013 dealing with CSR, the Board, at its meeting held on 23 April
2021, amended the existing Policy. The Policy including the composition of the CSR Committee is uploaded on the website
of the Company https://www.bajajallianz.com/about-us.html The CSR projects approved by the Board for FY2022 will be
displayed on the said website. The Chief Financial Officer has certified that the funds disbursed have been utilised for the
purpose and in the manner approved by the Board for FY2021.
Significant and material orders passed by the Regulators or Courts

There were no significant and material orders passed by the Regulators or Courts or Tribunals during the year under review
impacting the going concern status of your Company and its operations in future.
Internal Audit
At the beginning of each financial year, an audit plan is rolled out after the same has been approved by Audit Committee.
The audit plan is aimed at evaluation of the efficacy and adequacy of internal control systems and compliance thereof,
robustness of internal processes, policies and accounting procedures, compliance with laws and regulations. Based on the
reports of internal audit function, process owners undertake corrective and preventive actions in their respective areas.
Significant audit observations and actions thereon are presented to the Audit Committee of Board. More details on Audit
Committee on composition and functioning of Audit Committee are given in the Corporate Governance Report.
The Company recognises that any internal control framework, no matter how well designed, has inherent limitations and
accordingly, regular audit and review processes ensure that such systems are reinforced on an ongoing basis.
Adequacy of Internal Financial Controls

Your Company has established an Internal Financial Control Framework as per the requirements of the Companies Act,
2013. The Company has documented its internal financial controls considering the essential components of various critical
processes, physical and operational. This includes its design, implementation and maintenance along with periodical
internal review of operational effectiveness and sustenance, which are commensurate with the nature of its business and
the size and complexity of its operations. This ensures orderly and efficient conduct of its business, including adherence
to the Company’s policies, safeguarding of its assets, prevention of errors, accuracy and completeness of the accounting
records and the timely preparation of reliable financial information.
47
The key components of the internal financial control framework include Entity Level Controls (ELC), Process Level Controls
and Review Controls. The Company undergoes review of internal controls by specialised third party professional consultants
across functions.
During the year under review, the internal financial controls with reference to the financial statements were adequate and
operating effectively.
There is no qualification, reservation, adverse remark or disclaimer made by the joint statutory auditors in their report on
Internal Financial Controls.
Particulars of employees
As required by the provisions of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, the names and other particulars of the employees are set out in the Annexure to this Report.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention,

Prohibition and Redressal) Act, 2013
Your Company has complied with provisions relating to the constitution of Internal Complaints Committee under the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the year under
review, no cases were filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.
Corporate governance
A report on Corporate Governance as required under the Corporate Governance Guidelines for insurance companies issued
by IRDAI (Corporate Governance Report) is annexed to this report along with a certificate from the Company Secretary.
Composition of Committees
These details are provided in the Corporate Governance Report annexed to this report.
Establishment of vigil mechanism

The Company has established a vigil mechanism in the form of Whistle Blowing Committee for the employees to raise
concerns internally about possible irregularities, governance weaknesses, financial reporting issues or other such matters of
irregularities. The said vigil mechanism provides adequate measures to safeguard the persons who take recourse to such
vigil mechanism and in appropriate cases, the concerned person may approach the Chairperson of the Audit Committee.
The Audit Committee oversees the vigil mechanism of the Company.
Implementation of Indian Accounting Standards (Ind AS)

IRDAI vide its Circular No. IRDAI/F&A/CIR/ACTS/023/01/2020 dated 21 January 2020 deferred implementation of Ind AS sine
die from originally planned year i.e. FY2021.
Disclosures under the Companies Act, 2013 / rules thereunder

The Company is not required to maintain cost records pursuant to section 148 of the Companies Act, 2013 read with
rules thereunder.
Section 186 of the Companies Act, 2013 relating to loans, guarantees and investments, requiring, inter alia, disclosure
thereof in the financial statements does not apply to the Company.
The Company does not have any subsidiary, joint venture or associate Company.
The Company has not accepted any deposits during the year under review.
Neither any application was made during FY2021 nor any proceeding is pending as at the end of the said financial year
under the Insolvency and Bankruptcy Code, 2016.
Neither any loan was taken from any bank or financial institution nor any settlement was done with any bank or
financial institution during FY2021.
48
04-37 40-88 90-161
Secretarial Standards of ICSI

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of
India from time to time.
Statutory auditors
BSR & Co. LLP, Chartered Accountants (FRN: 101248W / W100022), the joint statutory auditors of the Company, hold
office up to conclusion of the 22nd AGM. S R Batliboi & Co. LLP, Chartered Accountants (FRN: 301003E / E300005), the joint
statutory auditors of the Company, hold office up to conclusion of the 23rd AGM. The joint statutory auditors have confirmed
they are not disqualified from continuing as statutory auditors of the Company.
The Audit Report from the joint statutory auditors does not contain any qualification, reservation or adverse
remark or disclaimer.
During the year under review, there was no fraud reported by the joint statutory auditors to the Audit Committee under
section 143(12) of the Companies Act, 2013.
Secretarial auditor
Pursuant to section 204 of the Act, the Board has re-appointed Shyamprasad Limaye, Company Secretary in Practice (FCS
No. 1587, CP No. 572) to undertake the Secretarial Audit of the Company for FY2021.
A report from the secretarial auditor in the prescribed Form MR-3 is annexed to this Report. The same does not contain any
qualification, reservation or adverse remark or disclaimer. During the year under review, there was no fraud reported by
the secretarial auditor to the Audit Committee under section 143(12) of the Companies Act, 2013.
Appreciation & Acknowledgment

The Board is grateful to the IRDAI and other regulatory authorities for their continued support and particularly, for enabling
ease of business during the period of lockdown.
Your Company’s performance during the year would not have been possible without the commitment and hard work of
the employees. In this time of crisis when priorities were frequently changing, employees rose to the occasion as a team,
displaying persistence and passion in delivering results.
Your Directors take this opportunity to thank the promoters, Bajaj Finserv Limited and Allianz SE, for providing strategic
direction to and guidance in the working of the Company. The Board of Directors is thankful to your Company’s
policyholders, agents, intermediaries and reinsurers for reposing their unstinted faith in your Company.
For and on behalf of the Board of Directors of

Bajaj Allianz General Insurance Company Limited
Sanjiv Bajaj
Chairman
(DIN 00014615)
Pune, 23 April 2021
49
CSR at BAJAJ ALLIANZ GENERAL INSURANCE

and Bajaj Finserv Group Companies
The Bajaj Group’s humanitarian philosophy was articulated by Shri Jamnalalji Bajaj, who had advised that all
business activities should look for opportunities for philanthropy and that these philanthropic contributions to
society should be above any thought of business gains. As the Government of India implemented Corporate
Social Responsibility rules in 2014, the Bajaj Group of Companies significantly scaled up its activities in the social
development space. The Group has collaborated with more than 300 NGO partners – the projects supported are
in health, education, women’s empowerment, and environmental sustainability – and has made fund allocations
of over H 13,000 crore till date.
50
CSR at Bajaj Allianz General Insurance and Corporate Overview Statutory Reports Financial Statements
Bajaj Finserv Group Companies
04-37 40-88 90-161
Healthcare and child welfare are the two main focus areas in the Group’s philanthropic work. Specifically, the Group companies
support interventions in fighting malnutrition; reaching out to underserved communities with holistic healthcare facilities; and
provision of shelter for street children.
Healthcare COVID-19 response

The absence of affordable healthcare is one of the On March 26, 2020, the day the Government
main challenges for India, and this drawback leads of India imposed the nationwide lockdown to
to high maternal and infant mortality rates and malnourishment curb the spread of the novel coronavirus, the Bajaj Group
as well as widespread communicable and non-communicable pledged H 100 crore to the fight against COVID-19. Working
diseases. The Bajaj Group strives to mitigate this through a wide with the Government of India and a network of 200+ NGO
variety of projects that provide vulnerable communities with access partners, the Group made a commitment to ensure that
to best-in-class treatment for paediatric cancer, epilepsy, diabetes, resources like healthcare and other necessities of life
heart ailments, etc. reach those who need it the most. The Group made a
contribution of H 47 crore towards the upgrade of key
In addition to direct tertiary care (which is the level of care where
healthcare infrastructure across Pune, Sikar, Udham Singh
sophisticated healthcare infrastructure is required), our programmes
Nagar, and Aurangabad.
with our NGO partners Bandhan (Konnagar, West Bengal) and
CRY (Rajasthan) also seek to provide healthcare to expecting The focus was on upgrading the Urban, Rural and
mothers and children in rural areas. Peri-urban facilities via the provision of equipment and
consumables, and by supporting the operation of COVID-19
Ensuring child health in the first few years of their life, when
care units and isolation wards. Critical equipment was
the growth spurt occurs, is a key priority. The prevalence of
provided to the tertiary care facilities in our core districts
underweight children in India is among the highest in the world,
and 21 facilities were targeted for key healthcare upgrade in
and malnourished children often either perish early or grow up
a phased manner. These facilities have played a key role
with diseases. The Bajaj Group has supported a diverse range
during the second wave of the pandemic.
of interventions addressing this issue in 500+ remote tribal
villages across India – conventional nutrition support in districts In related programmes, the Group reached out to people
of Maharashtra (Gadchiroli, Nandurbar, Palghar, Amravati); left in deep distress by the stoppage of economic activities
technology-led mother and child healthcare in tribal areas of following the lockdown. More than 20 lakh meals were
southern Rajasthan; and revival of traditional millet superfoods distributed in Pune and Aurangabad; 10,000 dry ration
by gene campaign in Uttarakhand. packets and equivalent were distributed in Sikar; and more
than 40 lakh meals/ration equivalent were given to
migrants in Maharashtra, Uttarakhand, and Rajasthan.
Child Protection Supporting distressed livelihoods was a key part of the
The Group’s support for child protection and shelter Group’s strategy in the first wave of the pandemic. Projects
programmes –implemented by Rainbow Homes, were initiated with Jankidevi Bajaj Gram Vikas Sanstha
SOS, Pride, Tara Mobile Creche, Janaseva Foundation, Seva Mandir, ( JBGVS), Sasakawa India Leprosy Foundation, Pradan,
and others – provides vulnerable children with protection and Sahjeevan, Gramin Evam Samajik Vikas Sanstha, iCreate
also education and life skills. In many cases, a safe shelter for the India, SVP-Jagruti, Aarohi, and Reanalysis (in collaboration
children enables their parents to undertake their economic activities. with JBGVS) to start pilots on livelihood, focusing on
Together, these protection-focused interventions reach more than geographies that had seen the return of migrant workers,
2.5 lakh children, and entail a commitment of over H 100 crore. so that they would not remain unemployed.
Employment
Banking, financial service and insurance (BFSI) is a growing sector in India that requires very specific attitude, skills, and
domain knowledge. To help fresh graduates and final-year undergraduate students to make a career in BFSI, a special
course has been designed by Bajaj Finserv. This course, CPBFI (a customised certificate programme in banking, finance, and insurance)
not only increases the employability of the Indian youth, but also creates a local talent pool for the BFSI sector in Tier 2 and 3 cities.
To design the course, the Group has partnered with a top management school and experts in the field of mental health. The CPBFI
training is imparted by a team of corporate trainers, who go beyond the curriculum and share their corporate experience with the
students, becoming their mentors in the process.
A final round of interviews is conducted by recruiters from Bajaj Finserv and its subsidiaries, where the students gain experience of a
corporate recruitment process and receive feedback about their own readiness for the industry. Bajaj Finserv has already conducted
2 job fairs on a pilot basis. Going forward, a placement division would be set up to provide employment opportunities for the CPBFI
alumni in BFSI and allied sectors. The project is functional across 9 states and 55 districts and more than 9,500 students have benefited
from the programme.
51
Annual Report on Corporate Social Responsibility Activities

1. Brief outline of Company’s CSR Policy:
The Company’s Corporate Social Responsibility (CSR) Policy outlines the Company’s responsibility as a corporate citizen
and lays down the guidelines and mechanism for undertaking activities for welfare and sustainable development of
the community at large including health-care, education, etc. The CSR Policy of the Company outlines the approach
and direction given by the Board of Directors of the Company taking into account the recommendations of its CSR
Committee and guiding principles for selection, implementation and monitoring of CSR activities as well as formulation
of the annual action plan. The Company would carry out its CSR activities with the objective of overall National and
Community Development taking into account the legal provisions contained in section 135 and Schedule VII of the
Companies Act, 2013 and the rules made thereunder. Focus would also be placed on lives, living and livelihood.
The process for implementation of CSR programs involves identification of programs based on proposals received
through various channels, assessment of the project in terms of funding required, overall scope and area of
implementation, due diligence of implementation agency and recommendation to the CSR Committee. If found
appropriate, the CSR Committee approves the proposal and amount of expenditure to be incurred on the same within
the overall limit approved by the Board.
2. Composition of the CSR Committee:

Number of Number of
meetings of meetings of CSR
Sr. Name of CSR Committee held Committee attended
No. Director Designation / Nature of Directorship during the year during the year
1. Sanjiv Bajaj Chairman, Non-executive, Non-independent Director 3 3
2. Ritu Arora Non-executive Non-independent Director 3 3
3. Ranjit Gupta Non-executive Non-independent Director 3 3
4. Anami Roy Independent Director 3 3
5. Tapan Singhel Managing Director & Chief Executive Officer 3 3
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the
Board are disclosed on the website of the Company: https://www.bajajallianz.com/about-us/corporate-policy.html
4. Details of impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable: Not applicable since no project was
due for impact assessment.
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate
Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: Nil
6. Average net profit of the Company as per section 135(5): ` 12,934,602,282
7. (a) Two percent of average net profit of the Company as per section 135(5): ` 258,692,046
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil
(c) Amount required to be set off for the financial year, if any: Not applicable
(d) Total CSR obligation for the financial year (7a+7b-7c): ` 258,692,046
52
Annexures to the Directors’ Report for the year ended 31 March 2021 Corporate Overview Statutory Reports Financial Statements
04-37 40-88 90-161
8. (a) CSR amount spent or unspent for the financial year:
Amount Unspent (in `)
Total Amount Total Amount transferred to Unspent Amount transferred to any fund specified under Schedule
Spent for the CSR Account as per section 135(6) VII as per second proviso to section 135(5)
Financial Year
(in `) Amount Date of transfer Name of the Fund Amount Date of transfer
259,571,000 Not applicable
53
54
(b) Details of CSR amount spent against ongoing projects for the financial year:
Amount
transferred to Mode of
Amount Unspent CSR Mode of implementation -
Local Project Amount spent in Account for the implementation Through
Item from the list of area Location of the project duration allocated for the current project as per - Direct Implementing
Sr. activities in Schedule VII (Yes/ (in the project financial year section 135(6) (Yes/ Agency
No. Name of the Project of the Act No) State District months) (in `) (in `) (in `) No) Name
The School Project Promoting education Yes Maharashtra Pune 15 1,50,00,000 10,00,000 1,50,00,000 No The Akanksha
1.
Foundation
Bajaj- Rainbow Street children Promoting health care Yes Maharashtra Pune 36 9,75,00,000 2,85,00,000 5,57,00,000 No Association for
Project including preventive health Rural and Urban
2.
care Needy (Arun)
(Rainbow homes)
Bajaj- Mazi City Swach City-Phase Promoting health care Yes Maharashtra Aurangabad 36 94,00,000 20,50,000 94,00,000 No Center for
Bajaj allianz general insurance company Limited
2 including preventive health Applied Research

3. care and People
Engagement
(CARPE)
Sponsoring the education of Promoting education Yes Maharashtra Pune 60 1,05,00,000 21,00,000 84,00,000 No Foundation For
meritorious and financially Excellence India
4.
needy medical students from Trust (FFEIT)
Maharashtra
Triveni-A school Mental Health Promoting health care Yes Maharashtra Pune 15 32,50,000 10,00,000 30,00,000 No Institute of
5. Initiative including preventive health Psychological
care Health
Construction of Rehabilitation Setting up Yes Maharashtra Pune 27 2,25,00,000 75,00,000 2,25,00,000 No Janaseva
Centre For Street Children homes and Foundation
6. hostels for
women and
orphans
Funding support for Promoting health care Yes Maharashtra Mumbai 15 60,00,000 5,00,000 60,00,000 No Mumbai Mobile
comprehensive daycare including preventive health Creche
7.
programme for children living on care
construction sites
Promotion of Comprehensive Promoting health care Yes Rajasthan Sirohi 40 2,95,00,000 96,00,000 1,49,00,000 No Professional
Farm based Livelihoods through including preventive health Assistance for
8.
Collectives in a Sustainable care Development
Manner Action (PRADAN)
SEHER-School Mental Health Promoting health care Yes Maharashtra Pune 39 1,45,00,000 45,00,000 90,00,000 No Sangath
9. program including preventive health
care
21st Annual Report 2020-21
Amount
transferred to Mode of
Amount Unspent CSR Mode of implementation -
Local Project Amount spent in Account for the implementation Through
Item from the list of area Location of the project duration allocated for the current project as per - Direct Implementing
Sr. activities in Schedule VII (Yes/ (in the project financial year section 135(6) (Yes/ Agency
No. Name of the Project of the Act No) State District months) (in `) (in `) (in `) No) Name
Program For Livelihood Promoting education Yes Maharashtra Aurangabad 36 2,93,00,000 70,00,000 1,76,00,000 No Mahila SEWA Trust
10.
regeneration and sustainability
Support for cleft reconstructive Promoting health care Yes PAN India PAN India 15 5,25,00,000 4,60,00,000 4,60,00,000 No Smile Train
surgeries and rehabilitation of cleft including preventive health
11.
patients by speech therapy and care
orthodontic treatment
EHSAS (Empowerment Health and Promoting health care Yes Maharashtra Mumbai 15 1,00,00,000 90,00,000 90,00,000 No Society for
Sexuality of Adolescents) including preventive health Nutrition Education
12.
care and Health Action
(SNEHA)
Funding on operating expenses for Promoting health care Yes Maharashtra Pune 15 35,00,000 5,00,000 35,00,000 No Snehalaya
13. Snehadar including preventive health
care
Annexures to the Directors’ Report for the year ended 31 March 2021
Snehankur Adoption Center Promoting health care Yes Maharashtra Ahmednagar 36 1,50,00,000 25,00,000 1,50,00,000 No Snehalaya
14. including preventive health
care
Financial Adoption of Cancer Promoting health care Yes Maharashtra Mumbai 15 2,00,00,000 25,00,000 2,00,00,000 No Tata Memorial
15. affected children including preventive health centre Mumbai
04-37
care (IMPACCT)
Enable poor women to align with Promoting education Yes Rajasthan Swai 27 1,43,00,000 60,00,000 1,15,00,000 No Udyogini
Corporate Overview
16. new farming techniques Madhopur

.
Bajaj Drishti Project Promoting health care Yes Maharashtra Pune 36 9,00,00,000 2,75,00,000 9,00,00,000 No Vision Spring
17. including preventive health
care
Sustainable livelihood Promoting education Yes Maharashtra Sinner 39 3,90,00,000 1,76,00,000 3,03,00,000 No Yuvamitra
40-88
enhancement of poor and

18.
marginalized women through Goat
Statutory Reports
rearing
Health activities and awareness Promoting education Yes Rajasthan Sirohi 36 95,00,000 37,00,000 37,00,000 No Professional
pertaining to Covid19 Assistance for
19.
Development
Action (PRADAN)
Total 17,90,50,000
90-161
Notes: CSR Registration number for the aforesaid implementing agencies is not mentioned since the provision in this respect is applicable in case of projects approved on and after 1 April 2021.
55
Financial Statements
56
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
Mode of implementation -
Amount
Through implementing
Item from the list of spent for Mode of
Location of the project agency
Sl. activities in schedule Local area the project implementation
No. Name of the Project VII to the Act (Yes/ No) State District (in `) - Direct (Yes/No) Name
1. Immediate Food relief in the Low- Promoting health care Yes Maharashtra Pune 2,00,00.000 No Jankidevi Bajaj Gram Vikas Sanstha
income pockets of PMC and PCMC area including preventive
through Annamitra Foundation health care
2. Creation of COVID response fund in JBGVS Promoting health care Yes Maharashtra Pune 4,88,00,000 No Jankidevi Bajaj Gram Vikas Sanstha
including preventive
health care
Bajaj allianz general insurance company Limited
3. CSR contribution for COVID-19 Contribution to PM CARES Not PAN India PAN India 17,21,000 No PM CARES Funds
Fund applicable
Total 7,05,21,000
Note: CSR Registration number for the aforesaid implementing agencies is not mentioned since the provision in this respect is applicable in case of projects approved on and after 1 April 2021.
(d) Amount spent in Administrative Overheads: ` 1,00,00,000
(e) Amount spent on Impact Assessment, if applicable: Not applicable
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 25,95,71,000
(g) Excess amount for set off, if any:
Sl. No. Particular Amount (in `)
(i) Two percent of average net profit of the Company as per section 135(5) 25,86,92,046
(ii) Total amount spent for the Financial Year 25,95,71,000
(iii) Excess amount spent for the financial year [(ii)-(i)] 8,78,954
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any 0
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 8,78,954
21st Annual Report 2020-21
04-37 40-88 90-161
9. (a) Details of Unspent CSR amount for the preceding three financial years:
Amount Amount transferred to any fund specified Amount

transferred to under Schedule VII as per section 135(6), if any. remaining to
Unspent CSR Amount spent be spent in
Preceding Account under in the reporting succeeding
Financial section 135 (6) Financial Year Name of the Amount Date of financial
Sl. No. Year (in `) (in `). Fund (in `) transfer years. (in `)
1 FY2018 Not appliable 17,53,02,500 - - - -
2 FY2019 Not appliable 21,40,76,800 - - - -
3 FY2020 Not appliable 23,93,40,023 - - - -
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial
year(s): Not applicable
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year (asset-wise details): Nil
(a) Date of creation or acquisition of the capital asset(s): -
(b) Amount of CSR spent for creation or acquisition of capital asset: -
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their
address etc.: -
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the
capital asset): -
11. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per section
135(5): Not Applicable
Sanjiv Bajaj Tapan Singhel

(DIN 00014615) (DIN 03428746)
Chairman of Managing Director &
CSR Committee Chief Executive Officer
Date: 23 April 2021

57
Intentionally Left Blank
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04-37 40-88 90-161
Report on Corporate Governance

Corporate Governance is about promoting fairness, transparency, accountability, commitment to values,
ethical business conduct and about considering all stakeholders’ interests while conducting business. This
report outlines the compliance of the Company with the Corporate Governance Guidelines of Insurance
Regulatory and Development Authority of India (IRDAI) and the Companies Act, 2013 in so far as it relates to
Corporate Governance.
As can be seen from this report, the Company’s governance practices and disclosures often go well beyond
complying with the minimum statutory requirements stipulated in applicable law.
The various elements of the Corporate Governance framework along with relevant details are described below:
Philosophy
Corporate Governance is a reflection of principles entrenched in our values and policies and also embedded
in our day to day business practices, leading to value driven growth. The commitment of the Company and its
promoters to the highest standards of Corporate Governance practices predates the Companies Act and the
Insurance regulations. Ethical dealings, transparency, fairness, disclosure and empowered accountability are the
main thrust of the working of the Company.
Key elements of Corporate Governance in the Company include the following:

Seeking to conform to applicable laws, at all times
Number of Board meetings more than the statutory requirement, including meeting dedicated to discussing
strategy and operating plan
Board is composed of directors from diverse backgrounds and with substantial experience, who are able to
provide appropriate guidance to the executive management as required.
Independent directors with outstanding track record and reputation
Pre-Audit Committee meetings of Chairperson of Audit Committee with Statutory auditors, Internal auditor
and members of executive management who are the process owners
Separate meeting of independent directors without presence of non-independent directors or
executive management
Confidential Board evaluation process where each Board member evaluates the performance of every other
Director, Committees of the Board, the Chairman of the Board and the Board
Complete and detailed information provided to Board members to enable them to evaluate matters brought
to the Board carefully so that discussions are meaningful
Adoption of governance policies by the Board which are in line with the best practice
Regular meetings between Company Secretaries of all the group companies in the form of a Governance
Council, in order to share the best practices across group companies as well as to arrive at common
processes for compliance with regulations.
Board of Directors
In keeping with good governance practice, the Company’s policy is to have an appropriate blend of executive, non-
executive and independent directors to maintain the independence of the Board and to separate the Board functions of
governance and management.
Composition of the Board of Directors

The Board of Directors consists of 13 Directors which include 4 Independent Directors. The CEO of the Company, as the
Managing Director, is executive member of the Board of Directors. All other Directors, including the Chairman, are non-
executive Directors.
The Managing Director, who is the only executive director, is a professional with vast experience in insurance and
unrelated to the promoters. Two of the Directors are women.
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A brief profile of the Directors is as follows:
Name of the Director Qualification Field of specialization
Sanjiv Bajaj, Bachelor’s degree in Engineering He is currently the Chairman and Managing Director of Bajaj
Chairman, (Mechanical) with distinction from the Finserv Ltd. He has vast experience in variety of areas in
Non-executive and University of Pune, a Master’s degree business strategy, marketing, finance, investment, audit, legal
Non-Independent Director in Science (Manufacturing Systems and IT related functions in automotive and financial services
Engineering) with distinction from the sectors. He is widely regarded as being among the top business
University of Warwick, U.K. and a Master’s leaders in India’s financial services sector.
degree in Business Administration from
Harvard Business School, U.S.A.
Ritu Arora, Post-Graduate in Management from S. P. She is the CEO and CIO (Asia) and a member of global Allianz
Non-executive and Jain Institute of Management and Research, Investment Management (AIM) Board. AIM is responsible for
Non-independent Director she completed ICWAI (Institute of Cost investments of Allianz insurance companies worldwide. AIM
and Works Accountants) and is a lady Asia hub, oversees investments of 20 entities in 11 countries
Gold medalist from Osmania University in across asset classes: debt, corporates, equities and alternatives.
Bachelor of Commerce (Hons). She represents Allianz on the steering committee of G7 Investor
Leadership Network. She has over 24 years of leadership
experience and been the founding member of two very
successful life insurance ventures in India. She was awarded
World Women Leadership Achievement Award by World
Women Leadership Congress in 2016 and “Woman Leader of
Choice” Award by WILL in 2013.
Niraj Bajaj, Bachelor’s degree in Commerce from He has been Chairman of Mukand Ltd. since 14 July 2007 and
Non-executive and Sydenham College of Commerce and serves as its Managing Director. He is one of the Promoters
Non-independent Director Economics, Mumbai and a Master’s degree of the Bajaj Group. He was the President of Indian Merchants’
in Business Administration from Harvard Chamber, Alloy Steel Producer’s Association and Indian Stainless
Business School, U.S.A. Steel Development Association.
Sergio Balbinot, Degree in Economics and Business He is currently a Member of the Board of Management of
Non-executive and Administration from University of Bologna. Allianz SE and responsible for the insurance business in the
Non-independent Director countries of Southern and Western Europe and Asia at Allianz
SE.
Meleveetil Damodaran, Graduate with distinction in Economics and He has in a career spanning over 40 years, worked with
Non-executive and in Law from the Universities of Madras and the Union and the State governments in India, regulatory
Non-independent Director Delhi respectively bodies, investment institutions, banks, development financial
institutions and with the private sector. He has held regulatory
and developmental positions in the Government and in India’s
financial sector, before demitting office as Chairman, Securities
and Exchange Board of India. He was elected Chairman of
the International Organization of Securities Commissions
(IOSCO)’s 80-member Emerging Markets Committee. He was
the Chairman of Unit Trust of India and Industrial Development
Bank of India, where he successfully led their turnaround
efforts.
Ranjit Gupta, Fellow of the Institution of Engineering and He is currently working as President – Insurance, at Bajaj
Non-executive and Technology, London Finserv Ltd. He has rich experience in the automotive and
Non-independent Director financial services sectors.
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Suraj Mehta, Honours Graduate in Economics from He has held key management positions in India and abroad
Independent Director Calcutta University with ANZ Grindlays Bank till the year 1994. Thereafter, he was
the Chief Executive Officer of Dresdner Bank AG in India and
was the Geographic Head for the group’s four businesses which
included Investment Banking, Securities Broking and Software
Development. He was also the Chief Executive Officer of NABIL
Bank Ltd., the largest private sector bank in Nepal.
Lila Poonawalla, Bachelor’s Degree in Mechanical She is the Chairperson of Lila Poonawalla Foundation and
Independent Director Engineering from COEP, Pune, Marketing also former Chairperson and Managing Director of Alfa Laval-
management course at Harvard University, Tetra Pak India. She was the Chairperson of the Board of
a Senior executive program at Stanford Governors of Indian Institute of Technology, Ropar. She has
University and a General management been presented the “Padmashree” award in 1989, Royal order
program at IMDR Management Institute, of the Polar star and Royal Order of the Polar Star – Commander
Lausanne, besides a Tier III program at IIM 1st Class from the King of Sweden along with numerous other
Ahmedabad. national and international awards.
Anami Roy, Master’s degree in Arts and Master of He is a distinguished former civil servant, having served in the
Independent Director Philosophy Indian Police Service in Maharashtra and the Government of
India for over 38 years. He held a wide variety of assignments
both in Maharashtra and the Central Government including
Commissioner of Police, Aurangabad, Pune and Mumbai, and
retired as Director General of Police, Maharashtra, commanding
a 225,000 strong Force. He was appointed as an Advisor to
the Governor of Andhra Pradesh when the State was under
President’s rule in 2014.
Shashi Kant Sharma, Bachelor of Science degree from University He served as the Comptroller and Auditor General (CAG) of India
Independent Director of Allahabad, an M. A. in Political Science from 23 May 2013 to 24 September 2017. Before taking office as
from Agra University and M. Sc. in the CAG, he was the Defense Secretary, Government of India.
Administrative Science and Development He was also the Secretary, Department of Financial Services
Problems from the University of York (the (Ministry of Finance) and Secretary, Department of Information
UK). Technology (Ministry of Telecommunication), in the Government
of India. In all, he has over forty years of experience in public
policy and management. He was elected by the General
Assembly of the United Nations as a Member of UN Board
of Auditors in July, 2014, and was chairing the UN Board of
Auditors up to September, 2017. He was also active on the
Governing Boards of the International Organization of Supreme
Audit Institutions and the Asian Organization of Supreme Audit
Institutions.
S Sreenivasan Bachelor’s Degree of Science (Physics, He has been the President (Finance) of Bajaj Finserv Limited
Non-executive and Mathematics and Statistics) from since September’ 2011. Since 1 October 2014, he is the
non-independent the University of Kerala, a Chartered Chief Financial Officer of Bajaj Finserv Limited. He has held
director Accountant, a Cost Accountant, a Chartered leadership roles in the Company (as CFO from July 2004 to
Financial Analyst (CFA Institute, Virginia, September 2010) and Bahrain National Holding Company (a
USA), MBA from the Indian Institute of holding Company for general and life insurance businesses),
Management, Calcutta overseeing Corporate Finance, Planning, Management,
Accounting and Taxation functions. Prior to his tenure at Bahrain
National Holding Company, he has worked in the Finance and
Accounting departments of Thermax Devilbiss Limited and Bajaj
Auto Limited.
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Avais Karmali, Master of Science in Actuarial Science from He is currently working at the Allianz SE Board Office
Non-executive and HEC Lausanne Switzerland responsible for Southern and Western Europe and Asia.
non-independent director
Alternate Director for Mr.

Sergio Balbinot
Tapan Singhel, Banaras Hindu University alumnus He started his career with a prominent PSU insurer as a direct
Managing Director & M Sc in Physics (Gold medalist) Officer in 1991 before joining the Company in 2001. He has
Chief Executive Officer been with the Company since its inception in 2001 and a part
of the core team formed to plan and execute the retail market
strategy of the Company.
Note: T S Vijayan, who was appointed as Additional Director with effect from 1 April 2020, held office till the date of subsequent Annual General Meeting
i.e. 17 July 2020 pursuant to section 161(1) of the Companies Act, 2013 and ceased to be Additional Director thereafter.
Board Meetings
The Board met five times during FY2021 as compared to the minimum statutorily required 4 meetings including one
meeting dedicated to strategy, planning and annual budget. The Board meets once in every quarter, to, inter alia, review
the Company’s quarterly and annual financial results, regulatory issues, risk, business plans and their implementation,
solvency margin, etc. The gap between two consecutive board meetings was less than 120 days as required by law. (The
Ministry of Corporate Affairs had relaxed this requirement to 180 days up to 30 September 2020 as a special measure in
view of COVID-19 outbreak).
In case of any matter requiring urgent approval of the Board, the approval is taken by passing resolution by circulation.
The Board is provided, on a timely basis, detailed agenda papers in advance of the meetings. The agenda items include,
inter alia, minutes of previous meetings of the Board and Committees, business reviews, plans and budget, quarterly /
annual financial results, financial condition report, bonus to policyholders, investment performance, approval / reviews of
Company policies, formation / reconstitution of Board Committees, etc.
Directors have separate and independent access to officers of the Company. The Independent Directors, in their
meeting held on 14 January 2021, have expressed satisfaction on the quantity, quality and timeliness of the information
supplied to the Board.
The Company on an ongoing basis endeavors to keep all the Directors abreast of the industry in which Company operates,
business models, risk metrices, mitigation and management, governing regulations, information technology including cyber
security, their roles, rights and responsibilities and major developments and updates on the Company, etc. During the year
under review, the Directors were updated extensively at the Board and Risk Management Committee meetings on impact
of COVID-19, risks arising out of it and countermeasures. Independent Directors participated in orientation programme
conducted by National Insurance Academy, Pune.
Board Meetings held during FY2021

The Board of Directors met five times during FY2021 on 15 May 2020, 17 July 2020, 16 October 2020, 15 January 2021 and
11 March 2021. Following table sets out the details of attendance of Directors at the aforesaid Board meetings.
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Name of Director Designation / Status No. of meetings attended
Sanjiv Bajaj Chairman, Non-Executive and Non-Independent Director 5/5
Ritu Arora Non-Executive and Non-Independent Director 5/5
Niraj Bajaj Non-Executive and Non-Independent Director 5/5
Sergio Balbinot Non-Executive and Non-Independent Director 4/5
Meleveetil Damodaran Non-Executive and Non-Independent Director 5/5
Ranjit Gupta Non-Executive and Non-Independent Director 5/5
Suraj Mehta Independent Director 5/5
Lila Poonawalla Independent Director 5/5
Anami Roy Independent Director 5/5
Shashi Kant Sharma Independent Director 5/5
S Sreenivasan Non-Executive and Non-Independent Director 5/5
T S Vijayan Non-Executive and Non-Independent Director 1/2
Avais Karmali Alternate Director, Non-Executive and Non-Independent Director 1/1
Tapan Singhel Managing Director and Chief Executive Officer 5/5
Independent Directors
The Board has 4 Independent Directors with rich and diverse experience in the relevant fields. The Independent Directors
conduct a separate meeting pursuant to the provisions of the Companies Act, 2013 to, inter alia, discuss the following:
i) Review of the performance of non-independent directors and the Board as a whole,
ii) Review of the performance of the Chairman of the Company; and
iii) Assessment of the quality, quantity and timeliness of flow of information to the Board. Additionally, the Independent
Directors periodically meet the statutory auditors separately without presence of management.
Committees of the Board of Directors: Constitution & Composition

The Board of Directors has committees consisting of Directors having required expertise and experience. The Committees
also invite other senior managers to its meetings to seek clarification and thereby improving the effectiveness. Audit
Committee, Investment Committee, Risk Management Committee, Policyholders’ Protection Committee and Nomination
and Remuneration Committee which are mandatorily required under the Corporate Governance Guidelines, have been
constituted in accordance with the requirements set out therein. Further, the Company has also formed Corporate Social
Responsibility Committee of the Board of Directors as required pursuant to section 135 of the Companies Act, 2013.
Audit Committee
The Audit Committee of the Board of Directors oversees the internal audit function and conducts a detailed review of
the internal, concurrent, systems and other audit reports including reports of the statutory auditors whereby detailed
management responses and action plans are reviewed. The Committee further reviews periodic financial reporting before
submission to the Board, disclosure processes, legal compliances, functioning of the internal financial control framework
and the internal audit department and whistle blower and sexual harassment complaints. The Committee also reviews
and approves the related party transactions. Statutory auditors attend the meetings of the Audit Committee to present
65
their findings and reports. The Audit Committee is directly responsible for the recommendation of the appointment,
remuneration, performance and oversight of the work of the internal, statutory, concurrent and Investment Risk
Management Systems and Process (IRMS) auditors. The Audit Committee reviews and sets the internal audit plan for the
year. The senior management personnel are invited to the meetings of the Audit Committee for providing clarifications
on the audit matters, along with the Head of Internal Audit, who presents his report and update on the audit plan to the
Committee at every meeting thereof.
The Chairperson of the Audit Committee conducts pre-audit committee meeting about one week before the Audit
Committee meeting with the senior management to review the audit observations, action taken reports on previous
reports, and regulatory issues, if any.
Lila Poonawalla, Independent Director, is the Chairperson of the Audit Committee with Suraj Mehta, Anami Roy and
Shashi Kant Sharma, Independent Directors and Ritu Arora, Sanjiv Bajaj and Ranjit Gupta, Directors, being the other
members thereof. All the members of the Audit Committee are non-executive Directors, with majority of them being
Independent Directors.
The Audit Committee met four times during FY2021 on 14 May 2020, 16 July 2020, 15 October 2020 and 14 January 2021.
Following table sets out the particulars of attendance of members of the Committee at the aforesaid meetings:
Name of member Designation / Status No. of meetings attended
Lila Poonawalla Chairperson, Independent Director 4/4
Sanjiv Bajaj Non-Executive and Non-Independent Director 4/4
Shashi Kant Sharma Independent Director 4/4
Investment Committee
The Investment Committee establishes the investment policy and operational framework for the investment operations
of the Company. It periodically reviews the investment performance and the market conditions and recommends the
investment policy for approval of the Board of Directors. The information provided to the Committee is rich in content
and discussions are extensive on key issues related to performance, risk, regulatory compliance, systems and structure of
investment teams.
Sanjiv Bajaj is the Chairman of the Investment Committee with Ritu Arora and Ranjit Gupta, Directors and Tapan Singhel,
Managing Director and Chief Executive Officer (MD & CEO), Gaurav Malhotra, Appointed Actuary, Ramandeep Singh
Sahni, Chief Financial Officer, Rajeev Kumar, Chief Risk Officer, and Amit Joshi, Chief Investment Officer being the other
members thereof.
The Committee met four times during FY2021 on 14 May 2020, 16 July 2020, 15 October 2020 and 14 January 2021.
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Gaurav Malhotra Appointed Actuary 4/4
Ramandeep Singh Sahni Chief Financial Officer 4/4
Rajeev Kumar Chief Risk Officer 4/4
Amit Joshi Chief Investment Officer 4/4
Policyholders’ Protection Committee

The Policyholders’ Protection Committee of the Board of Directors has the responsibility to put in place proper procedures
and effective mechanism to address complaints and grievances of policyholders including those arising out of mis-selling
by intermediaries and to ensure compliance with the statutory requirements relating to servicing of policyholders. It
reviews the Grievance Redressal Mechanism and the status of complaints at periodic intervals. Service turnaround times,
status of grievances and their resolution, root cause analysis of complaints, benchmarking with peer group, status of cases
in consumer court and ombudsmen are some of the matters reviewed on a regular basis.
Sanjiv Bajaj is the Chairman of the Policyholders’ Protection Committee with Ritu Arora, Ranjit Gupta, Directors and
Tapan Singhel, MD & CEO, being the other members thereof. The Appointed Actuary, Chief Financial Officer and Head of
Operations and Lila Poonawalla (Customer Representative) are also invited for meetings of the Committee.
The Committee met four times during FY2021 on 14 May 2020, 16 July 2020, 15 October 2020 and 14 January 2021.
Nomination and Remuneration Committee

Pursuant to section 178 of the Companies Act, 2013, the Company has formed the Nomination and Remuneration
Committee, with responsibility to identify persons who are qualified to become Directors and who may be appointed
in senior management in accordance with the criteria laid down, to formulate the criteria for determining qualifications,
positive attributes and independence of a Director, to specify the manner for effective evaluation of performance of
the Board, its committees and individual directors and review its implementation and compliance, recommendation of
remuneration policy for Directors, key managerial personnel and other employees, etc.
Lila Poonawalla, Independent Director, is the Chairperson of the Committee with Suraj Mehta and Anami Roy, Independent
Directors, Sanjiv Bajaj, Ritu Arora and Ranjit Gupta, Directors being the other members thereof.
The Committee met four times during FY2021 on 14 May 2020, 16 July 2020, 24 September 2020 and 14 January 2021.
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Lila Poonawalla Chairperson, Independent Director 4/4
Sanjiv Bajaj Non-Executive and Non-Independent Director 4/4
Corporate Social Responsibility (CSR) Committee

Pursuant to section 135 of the Companies Act, 2013, the Company has formed the Corporate Social Responsibility
Committee, with responsibility to formulate and monitor CSR policy of the Company, recommend the amount of
expenditure to be incurred on CSR activities, approve the projects for CSR activities, etc. The CSR team provides updates on
various projects to the Committee.
Sanjiv Bajaj is the Chairman of the Corporate Social Responsibility Committee with Ritu Arora, Ranjit Gupta, Directors,
Anami Roy, Independent Director and Tapan Singhel, MD & CEO being the other members thereof.
The Committee met three times during FY2021 on 15 May 2020, 16 July 2020 and 15 January 2021. Following table sets out
the particulars of attendance of members of the Committee at the aforesaid meetings:
Disclosure on remuneration of Managing Director (MD) and Key Management

Persons
The Company has a Board approved policy on the remuneration structure of the Managing Director / Chief Executive
Officer / Whole-Time Director of the Company.
a) Objectives & Key Features of Company’s Remuneration Policy

The objective of the policy is that the remuneration structure and the quantum payable to the MD besides being in
compliance with the applicable regulatory requirements should also be competitive in the Insurance industry. The
said policy sets out all aspects of the remuneration structure of the Managing Director / Chief Executive Officer /
Whole-Time Director of the Company including level and components of remuneration, risk adjustment, claw back,
remuneration in case of new appointment and revision of remuneration.
b) Design & Structure of the Remuneration Process

The Nomination and Remuneration Committee (NRC) considers the size and complexity of the Company for
comparison of salary levels prevailing amongst other insurance companies and other comparable companies in
financial services like NBFCs, Banks and Mutual Funds etc. Benchmarking is undertaken periodically in order to arrive at
an optimum compensation to be recommended to the Board so as to attract and retain the best talent.
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c) Risks adjustment to and linkage of performance with remuneration

The remuneration process considers the current and future risk factors in terms of setting the targets and evaluation
criteria as well. Performance criteria, aligned with the annual operating plan, are set covering quantitative measures as
well as relevant qualitative and risk factors, based on priorities set by the Board each year.
d) Elements of Remuneration of MD, other Directors & Key Management Persons

Independent Directors were paid sitting fees of ` 100,000 per meeting. Independent Directors are also entitled for
profit related commission at the rate of ` 100,000 per meeting of the Board or committee thereof, excluding Corporate
Social Responsibility Committee, attended by them, subject to maximum of ` 1,000,000 per annum per director which
is within the maximum limit (1% of net profits) under the Companies Act, 2013. Other than the MD, no other Director
of the Company is entitled to / paid any remuneration (excluding sitting fees and commission as aforesaid) during
FY2021, as all other members of the Board are non-executive.
Elements of remuneration package (including incentives) of MD & CEO and Key Management Persons, along with
the break-up of amount of remuneration awarded to MD for FY2021 into fixed, variable, etc. is given in the Annexure
to this report.
Enterprise Risk Management (ERM) framework

Risk objectives
Your Company operates in an environment that is continuously changing due to external pressures to quickly adapt to new
regulations and competition. Any business strategy entails risk. In all types of undertaking, there is the potential for events
and consequences that constitute opportunities for benefit (upside) or threats to success (downside).
At your Company, ERM deals with risks and opportunities to create or preserve value. ERM as a process is ongoing,
effected by people (Board of Directors, Management and Employees), applied in setting strategy and across the Company,
designed to identify potential events (risks and opportunities) and manage the risks within its risk appetite, to provide
reasonable assurance regarding the achievement of the Company’s objectives.
Your Company is committed towards managing risks in line with its stated risk appetite through a systematic framework
which identifies, evaluates, mitigates and monitors risks that could potentially have a material impact on the value of the
organisation or potentially hinder the organisation in achieving its stated business objectives and goals.
The risk management practices are aimed to address one or more of these risk management goals as given below:
Determine the risk profile / appetite of the Company;
Ensure integration of risk considerations into decision-making processes including promotion of a strong risk
management culture supported by a robust risk governance structure;
Determine the relevant processes and strategies for risk management which include identification of risks, ongoing
measurement and monitoring of risk exposures and ensuring relevant control or risk transfer;
Develop and monitor mitigation plans for high risk items identified through the self-assessment mechanism carried out
by respective business functions, loss events and internal / statutory audit findings;
To ensure adherence to all regulatory mandates as laid down by different regulatory authorities and all critical internal
policies / limits;
Proactive and reactive approach to manage fraud;
Minimising reputational risk as identified and assessed as part of a regular assessment and managed on a
case-by-case basis.
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Risk governance framework

Effective risk management is based on a common understanding of risks, clear organisational structures and
comprehensively defined risk management processes. The management establishes and adheres to a risk strategy and
associated risk appetite for the Company’s business, which is derived from and consistent with the business strategy. There
is a defined risk governance framework in place to address the risk management objectives of the Company. The risk
governance structure of the Company consists of the Risk Management Committee (RMC) of the Board and the Executive
Risk Committee (ERC).
The risk strategy of the Company is to identify actual and potential threats to the Company on a short and long-term
basis internally and externally. The RMC oversees the functioning of the overall risk management framework of the
Company and implementation of the risk management strategy. The RMC has also been vested with the responsibility to
formulate, implement, monitor and periodically revise the Asset Liability Management strategy of the Company. The RMC
comprises of Sanjiv Bajaj as the Chairman, with Ritu Arora, Ranjit Gupta, Directors and Tapan Singhel, MD & CEO being the
other members thereof. The Chief Risk Officer, Chief Investment Officer, Chief Financial Officer and Appointed Actuary are
permanent invitees to all meetings of the RMC.
The RMC met four times during FY2021 on 15 May 2020, 17 July 2020, 15 October 2020 and 15 January 2021. Following
table sets out the particulars and attendance of members of the Committee at the aforesaid meetings:
The supervisory level ERC, convened by the Chief Risk Officer, comprises of various Heads of Departments, which
have been identified as the owners of key risks within the Company. They are responsible for implementation of risk
management activities including risk mitigation plan within their respective vertical/department. This executive level
committee ensures centralised risk monitoring and management. The quorum of the meeting is one-third of the total
number of members of the committee. The ERC holds meetings on regular basis generally every quarter. The committee
may call for a meeting of the ERC if the needs arise and may invite any person to the meeting.
Covering major categories of assessable risks, independent of the assessment methodology and quantifiability, the risk
management framework encompasses practices relating to identification, assessment, monitoring and mitigation of
these risks. The overall risks are divided into several categories, which are further subdivided into major sub-categories.
While the risk categories remain clearly distinct from each other, at the time of assessment their interdependencies are
taken into account.
Key risks and their mitigation

1. Market risk and Asset Liability Management (ALM) risk arises from unexpected losses arising due to changes in market
prices or parameters influencing market prices or from changes to the net worth of assets and liabilities in related
undertakings driven by market parameters. The risk is mitigated by maintaining a desired mix between debt and
equity subjected to investment regulations by IRDAI, active asset management based on the ALM output along with
asset and liability duration matching which limits impact of interest rate changes.
2. Credit risk or the risk of default of counter parties is sought to be mitigated by investing in securities with minimum
acceptable credit rating and reviewing changes in credit ratings. The Company also seeks to deal with financially
sound reinsurers.
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3. Liquidity risk is monitored on a regular basis to ensure sufficient liquidity is maintained to meet short-term
obligations by timing the cash inflows and outflows through cash flow matching and by maintaining a minimum mix
of liquid assets.
4. Operational risk is mitigated by a system of internal audit, risk control assessments and fraud prevention which flags
off areas where risks are identified.
5. Insurance / business risk is sought to be mitigated by executing business operating plan and having a risk and reward
plan for new business, renewals, expenses, claims ratio and monitor actuals.
6. The Company has a Disaster recovery (DR) site in a different seismic zone along with Disaster Recovery Plan (DRP) and
Business Continuity Policy with a detailed Business Continuity Plan to mitigate Business Continuity risk.
7. The Company’s robust Business Continuity Management system has been effective towards delivering uninterrupted
services to all stakeholders during the period adversely affected by outbreak of COVID-19 pandemic. The Company
introduced various initiatives and safety protocols for employees and business partners to include pathological testing,
medical kits, increased and enhanced healthcare insurance coverage, access to psychological counselling, work-from-
home policy, among others. The Company continues to support all stakeholders by adapting and making available
optimised digital platforms for seamless transactions.
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Certification for compliance of the Corporate

Governance Guidelines
I, Onkar Kothari, Company Secretary hereby certify that the Company has complied with the Corporate Governance
Guidelines for Insurance Companies issued by Insurance Regulatory and Development Authority of India (IRDAI), as
amended from time to time, and nothing has been concealed or suppressed.
For Bajaj Allianz General Insurance Company Limited
Onkar Kothari Date: 23 April 2021

Company Secretary & Compliance Officer Place: Pune
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Form No. MR -3
Secretarial Audit Report
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
For the financial year ended 31 March 2021
To
The Members,
Bajaj Allianz General Insurance Company Limited,
(CIN U66010PN2000PLC015329)
Bajaj Allianz House, Airport Road,
Yerawada, Pune- 411006
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Bajaj Allianz General Insurance Company Limited (hereinafter called as “the Company”). Subject to
limitation of physical interaction and verification of records caused by COVID-19 Pandemic lock down while taking review
after completion of financial year, the Secretarial Audit was conducted in a manner that provided me a reasonable basis for
evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Company, books, registers, papers, minute books, forms and returns filed and other
records maintained by the Company and also the information provided by the Company, its officers, agents and authorised
representatives during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the
audit period covering the financial year ended on 31 March 2021, complied with the applicable statutory provisions listed
hereunder and also that the Company has proper Board-processes and compliance mechanism in place subject to the
reporting made hereinafter.
I have examined the books, registers, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended on 31 March 2021, according to the provisions of:
1) The Companies Act, 2013 (the Act) and the rules made thereunder;
2) Foreign Exchange Management Act, 1999 and the rules and regulations made there under regarding Foreign
Direct Investment;
3) The Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999 and rules and regulations
made thereunder;
4) Rules, regulations, guidelines, circulars and notifications issued by the Insurance Regulatory and Development Authority
of India (IRDAI) as are applicable to a general insurance Company.
The Company is an unlisted public Company and subsidiary of a listed Company.
I have also examined compliance with the applicable clauses of the Secretarial Standards pursuant to section 118(10) of the
Act, issued by the Institute of Company Secretaries of India.
During the period under review the Company has complied with the applicable provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above.
I further report that the Board of Directors of the Company is duly constituted with proper balance of executive, non-
executive and independent directors. The changes in the composition of the Board of Directors that took place during the
period under review were carried out in compliance with the provisions of the Act.
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Adequate notices were given to all Directors to schedule the Board Meetings, including committees thereof, alongwith
agenda and detailed notes on agenda at least seven days in advance, and a system exists for seeking and obtaining
further information and clarifications on the agenda items before the meeting and for meaningful participation at the
meeting by the directors. The decisions are carried unanimously.
I further report that there are adequate systems and processes in the Company commensurate with the size and
operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
I further report that during the audit period there was no event/action having major bearing on the Company’s affairs in
pursuance of the above referred laws, rules, regulations, guidelines and standards.
Place : Pune Shyamprasad D. Limaye

Date : 23 April 2021 FCS No. 1587 C P No. 572
UDIN : F001587C000162814
Annexure
To,
The Members,
Bajaj Allianz General Insurance Company Limited,
Bajaj Allianz House, Airport Road,
Yerawada, Pune- 411006
My Secretarial Audit Report for Financial Year ended on 31 March 2021 of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. My responsibility is to
express an opinion on these secretarial records based on my audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct
facts are reflected in secretarial records. I believe that the process and practices, I followed provide a reasonable basis
for my opinion.
3. I have not verified the correctness and appropriateness of financial records and books of accounts of the Company.
4. Wherever required, I have obtained the Management representation about the compliance of laws, rules and
regulations and happening of event etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management. My examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
Place : Pune Shyamprasad D. Limaye

Date : 23 April 2021 FCS No. 1587 C P No. 572
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Management Report
for the Financial Year ended 31 March 2021
The Management Report has been prepared in accordance with the Insurance Regulatory and Development Authority
(‘IRDAI’) (Preparation of Financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002, and
circulars/guidelines issued by IRDAI thereafter, for the financial year ended 31 March 2021.
With respect to the operations of Bajaj Allianz General Insurance Company Limited (“the Company”) for the year ended 31
March 2021 and results thereof, the Management of the Company confirms and declares that:
1. Certificate of registration
The Company has paid to the Insurance Regulatory and Development Authority of India (IRDAI) the annual fees for
FY2022 as specified by the IRDA (Registration of Indian Insurance Companies) Regulations, 2000, as amended and the
registration certificate granted by IRDAI is in force as on the date of this report.
2. Statutory liabilities
All dues payable to the statutory authorities have been duly paid except those under dispute where the Company has
preferred appeals.
3. Shareholding pattern and transfer of shares

The shareholding pattern is in accordance with the statutory and regulatory requirements and no shares have been
transferred during the year.
The shareholding pattern of the Company is as follows:
Particulars 31 March 2021 31 March 2020
Bajaj Finserv Limited 74% 74%

Allianz SE 26% 26%
Total 100% 100%
4. Investments outside India

The Management has not invested any funds of holders of policies in India, directly or indirectly, outside India.
5. Solvency margin
We hereby confirm that the Company has maintained adequate assets to cover both its liabilities and required solvency
margin as prescribed under section 64VA of the Insurance Act, 1938 (amended by the Insurance Laws (Amendment)
Act, 2015) and the IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016. The
solvency position of the Company is as follows:
Actual solvency ratio 345% 254%

Required solvency ratio 150% 150%
77
6. Valuation of assets in the Balance Sheet

We certify that the values of all the assets have been reviewed on the date of Balance Sheet and in Management’s
belief, the assets set forth in the Balance Sheet are shown in the aggregate at amounts not exceeding their realizable
or market value, under the several headings - “investments”, “agents’ balances”, “outstanding premiums”, “income
accrued on investments”, “dues from other entities carrying on insurance business, including reinsurers (net)”, “cash
and bank balances” and several other items specified under “advances recoverable” except debt securities.
At 31 March 2021 the market and book value of these debt investments were as follows:
(` ‘000)
Value as per Balance Sheet
Market value*
(Book value)
Particulars 31 March 2021 31 March 2020 31 March 2021 31 March 2020
Debt investments 206,562,389 166,435,739 211,954,315 171,171,553
* Market value for government securities is the price obtained from FIMMDA and for debt securities other than government securities is determined
using bond valuer from FIMMDA, basis the yield of the security.
7. Overall risk exposure and strategy adopted to mitigate the same

The Enterprise Risk Management (ERM) framework of Company inculcates a rigorous, proactive, responsible and
balanced enterprise-wide risk management to support in informed decision making. The Company considers and
embeds the Corporate Governance Guidelines and other practices guided by IRDAI from time to time. The Company’s
ERM also draws upon the ISO 31000:2018 standard which is a world recognised methodology for risk management.
The Company has in place a risk management process which, inter alia, identifies major risks that the Company is
exposed to and sets out action plans for mitigation of such risks. The Company has been certified for its Operational
Risk Framework process in conformation to the globally recognised ISO 9001:2015 standard that signifies the
processes are benchmarked against international as well as domestic practices and are efficiently implemented
within the Company.
The Company has a multi-layer reinsurance program which seeks to optimize the retention of risk at each policy level
as well as at the level of lines of business. The Company’s retention of risks varies according to lines of business and
is decided after considering relevant factors such as capital and solvency position, available reinsurance capacity and
adequacy of reinsurance terms. The automatic reinsurance program of the Company is designed as multi-layer treaties
combining proportional reinsurance (where the Company and the reinsurer share the premiums and claims in an
agreed proportion) and non-proportional reinsurance. The limits under the treaties are set based on accumulation of
risks by location and category, after considering the exposure based on Probable Maximum Loss, where applicable,
and the expected frequency of claim events. The Company is exposed to catastrophe risk, which is mitigated by a
separate non-proportional reinsurance treaty, which limits the Company’s exposure to any single covered event. In
addition to treaties, the Company also purchases, where required, on a case-to-case basis, facultative reinsurance for
specific policies, where either treaty limits are inadequate or the risk is not covered by the terms of the reinsurance
treaties. The reinsurance program of the Company is filed with the IRDAI and is also approved by the Board.
Risk governance
The Company has a dedicated and independent risk management department headed by the Chief Risk Officer who
reports on status of risks to the Executive Risk Committee (“ERC”) and Risk Management Committee (“RMC”) of the
Board. The quarterly Committee meetings allow dedicated evaluation and review of existing strategies to mitigate
the risks. The Company also has established a Governance & Controls Committee (“GCC”) to promptly address process
improvement decisions and support in enhancing business resiliency for embracing change and create opportunities.
The RMC advises the Board on the risk exposures and the actions taken to manage the same. The ERC consisting of
various departmental representatives, convened by the Chief Risk Officer, reviews risks as well as the risk processes
78
Management Report for the financial year ended 31 March 2021 Corporate Overview Statutory Reports Financial Statements
04-37 40-88 90-161
and procedures with the Board approved Risk Management Policy. The Company has an independent Internal Audit
Department which audits the operations of its offices and functions. Key operational risks and compliances are audited
according to an audit plan approved by the Audit Committee of the Board of Directors. Valuation of policy liabilities
is independently done by the Actuary and the methodologies are also reviewed by IRDAI apart from the peer-
review mechanism
Risk management process

The Company has adopted the three lines-of-defence model for fostering proactive and risk-aware culture. Heads and
functional teams constitute the first line of defence that actively ensure effectiveness and relevance of the mitigation
controls, process improvements and system capabilities and subject to Internal Financial Control mechanism. The
second line of defence includes the risk management, compliance, fraud investigation team followed by Audit &
Assurance teams in the third line of defence.
Risk Management Cycle is applied as base for identification and solution tool that entails:
Operations & Monitoring

a) Risk Identification
b) Risk Assessment & Control
c) Risk Treatment & Management Action Plan
d) Monitoring & Reviewing
Controls & Compliance

a) Standard Operating Procedures
b) Internal Audit
c) External Audit
d) Periodic Risk Management Review
Risk Control Assessments that factor in multiple sources of risk related inputs are conducted periodically to enrich and
build on the previous risk registers in consideration of the changes to functional process. Risk Review process involves
segregating between control types, undertaking control testing for key areas to evaluate mitigation effectiveness,
understanding the level of residual risks, examining loss events and assigning Key Risk Indicators towards a
comprehensive risk rating mechanism and aggregated risk repository for profiling based on likelihood and impact. Risk
assessment methodology applied to report on the systemic and correlated risks is based on Occurrence Likelihood x
Probable Financial Impact x Outrage (Reputation, public perception).
The Company follows the Top Risk Assessment (“TRA”) methodology to identify, measure and assess residual risks
along with Bottoms-Up Approach from conducting periodic Risk Control Assessments.
Key risks: As a general (non-life) insurer, the Company is exposed to a variety of risks. The primary risks are that of
frequency of claims as measured by the number of claims in relation to number of policies outstanding and severity of
claims as measured by the average amount per claim. The frequency and severity risks vary according to the lines of
business. Key risks include:
79
Risks arising from our business

Risks accepted from or customers Risks from our investments operations
In Non-Life Insurance, majority of Income generated through approved investments Operational risk is the losses arising
products are offered for a 1 year period has been the prime source for insurance from inadequate or failed internal
exposing to pricing & reserving risks, companies in ensuring settlement of policyholder processes, people and systems or
underwriting (risk selection), claims claims. We hence ensure the exposure to the external events including legal risk
experience, risks from lower growth capital markets is managed prudently by the and regulatory changes.
rate for new and renewal business. investment strategy and portfolio management.
Operational failures of severe
Product bouquet includes Non-Motor
Investing in different assets to meet our nature may impact our customers
(like Property, Engineering, Marine,
obligations to our customers in respect to Risk-to- directly leading to reputational
Misc. etc.), Motor, Health, Crop and
Return balance we are exposed to credit default damage amongst the customers,
Travel.
risk and market risks (interest-rate movements, intermediaries, partners and
portfolio value fluctuations and mis-match in regulators.
assets & liabilities).
Some of the products like workmen’s Liquidity risk is the inability to pay claims as This includes business continuity
compensation, third-party motor claims and when they fall due, on account of insufficient management and fraud risks.
and liability insurance usually have a funds or investments tied up in illiquid asset
long tail claims experience and as per class.
court orders, requires providing for funds
accordingly to meet the contractual
obligations arising from the policies.
The key risks faced by the Company can broadly be categorized as below:
Risk type Risk preference Mitigations
A. Insurance risk
Premium pricing Channel and Line of Business wise Risk segmentation for identifying
Reserving analysis is conducted to monitor profitable segments
Underwriting business mix Monitoring key performance indicators
Claims management Periodic reserving calculations and Specifying deductibles for high risk
Catastrophe assumptions are validated for relevance Tracking concentration and
Business mix – acquisition and and accuracy for predicting claims accumulation
retention severity and frequency Run Nat Cat models on exposures for
Capital structure Portfolio level insurance are preferred different perils
Solvency in underwriting corporate programs Stringent policy terms & conditions
Liquidity We maintain adequate Actual Solvency Appropriate treaty and facultative
Margin over the 150% regulatory coverage’s in Reinsurance program
requirement Asset-Liability modelling
Stress Testing and Sensitivity analysis
for liquidity scenarios
Solvency and Capital Management
B. Credit Risk
Default Prudent investment strategy to We have a well-diversified investment
Reinsurance diversify credit risk exposure portfolio and healthy asset quality
Recoveries Adequate predictability modelling Investment limits and thresholds
of future cash inflows and outflows Assets invested in either sovereign or
allows us to allocate funds in durations AAA/ AA rated instruments.
that allow for better return over periods Reinsurance protection from reinsurers
Reinsurance decisions based on with good credit rating (A- and above)
risk retention appetite and capacity Risks are passed to multiple reinsures
determined from business growth in order to avoid accumulation of risk
plans
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04-37 40-88 90-161
Risk type Risk preference Mitigations
C. Market Risk
Unfavourable movement in Assets and Liabilities of the Company Investments are carried out within the
interest rates, currency rates and are well matched based on duration regulatory threshold limits
equity We have exposure to market risk We have very limited exposure to
Volatility in market prices but the expertise of the investment equity and foreign currency
Reinvestment management team and conservative Majority of the investments comprise
approach to investments allows the of fixed interest securities and within
risk to be fairly well managed that in Government securities
Adequate liquid and reserves are
maintained
Asset class diversification
D. Operational Risk
People (incl. conduct) We continue to develop system- Dedicated Operational Risk
Process based risk tools in-house for a move Management framework for continued
Systems towards integrated risk management Enterprise-wide resilience
Regulatory methodology Mapping of department RCAs, KRIs
Legal To continue to lower operational and internal Loss Event database
Reputation risk is priority that allows for taking for corrective action and preventive
Business resilience opportunity and curb preventable treatment
Security – Cyber & Data losses Event based root cause analysis for
IT General Controls (ITGC) We work on preventing frauds through design level flaw or operating level
Third-Party the fraud risk management framework failure
Frauds that includes fraud analytics model Fraud Strategy encompasses
External threats & tracking mechanism to reduce Prevention; Detection; Deterrence,
insurance frauds Response and awareness plan whilst
We have a strong Information maintaining an ethical culture and
Technology Governance Controls model conduct code in investigations
to address Technology risks, data and System based triggers for fraud
information security measures and detection and prevention
safety mechanisms against cyber- Help determine Risk Appetite /
threat tolerance limits to develop “alert
We select our vendors based on their systems” for senior management
resiliency to support us in ensuring Risks rating based on movements
we meet and exceed customer and maturity levels for proactive risk
expectations management rather than reactive
We attend to customer issues promptly Business Continuity Management
through our customer focus channels Systems in place and drills for various
We transfer specific insurable risks to scenarios are conducted
the insurance market for adequate We have an offsite disaster recovery
coverage’s and optimal premium. centre for its data backups
We assess our counterparties and key
vendors to avoid disruption and help
them inculcate best internal control
practices
Teams monitor for possible reputational
risks across various media channels
including print, social media etc.
The Company’s robust Business Continuity Management system has been very effective towards delivering
uninterrupted services to all stakeholders during the period adversely affected by outbreak of COVID-19 pandemic. The
Company introduced various initiatives and safety protocols for employees to include pathological testing, medical kits,
increased and enhanced healthcare insurance coverage, access to psychological counselling, work-from-home policy,
among others. The Company continues to support all stakeholders by adapting and making available optimised digital
platforms for seamless transactions.
81
8. Operations outside of India

The Company does not have operations in any other country.
9. Claims
The settlement time for claims depends on various factors pertinent to respective lines of business, such as cause
of loss, the nature of claim, etc. Typically, claims which result in total or partial destruction of assets or records (such
as those caused by Acts of God), those where adequate documentation to assess the claims are awaited and those
which are the subject matter of judicial processes (such as motor third party liability insurance claims) tend to have
longer settlement times, which are beyond the control of the Company. During FY2021, there was spurt in the health
insurance claims on account of COVID-19 treatments, which have been processed as per the regulatory norms and
reported to the Authority as required from time to time. The year also saw courts being closed for prolonged periods
of time, due to lockdowns, which also led to lesser motor third party claims being settled.
The Company has internal processes for regular review of such claims paid and outstanding. Ageing of claims
indicating the trends in average claim settlement time during the preceding five years is given in Annexure I and
ageing analysis of claims registered and not settled (excluding provision for IBNR / IBNER and claims relating to inward
re-insurance from terrorism pool and the Indian Motor Third Party Insurance Pool) is given in Annexure II to this Report.
10.Valuation of Investments
As required by IRDAI (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations
2002, all investments are valued as stated below:
Debt Securities and Non-convertible Preference Shares: All debt securities including government securities and
non-convertible preference shares are considered as ‘held to maturity’ and accordingly stated at historical cost
adjusted for amortization of premium or accretion of discount on constant yield to maturity basis in the Revenue
account and Profit and Loss account over the period of maturity/holding.
Additional Tier 1 (Basel III Compliant) Perpetual Bonds (AT1 Bonds) shall be forming part of Equity, market
valuation of AT1 Bonds are at applicable Market Yield Rates published by any rating agency registered with
Securities Exchange Board of India (SEBI).
Money market instruments (including treasury bills, certificate of deposits, commercial papers, collateralized
borrowing & lending obligation – CBLO and Tri-Party Repo - TREPs) are valued at historical cost and adjusted for
amortization of premium or accretion of discount, as may be the case, over the period of maturity/holding on a
straight-line basis.
Equity shares: Listed and actively traded securities are stated at the last quoted closing price on the National Stock
Exchange of India Limited (NSE). In case the equity shares are not listed on the NSE, then they are valued on the
last quoted closing price on BSE Limited. Unrealized gains or losses are credited / debited to the fair value change
account. Unlisted equity shares are stated at historical cost.
Mutual Fund Units: Mutual fund units are stated at their Net Asset Value (‘NAV’) at the Balance Sheet date.
Unrealized gains or losses are credited / debited to the fair value change account.
Fair Value Change Account: Fair value change account represents unrealized gains or losses in respect of
investments in equity securities, mutual fund units and AT1 Bonds outstanding at the close of the year. The
Balance in the account is considered as a component of Shareholders’ funds and Policyholders’ funds, as the case
may be, in the Balance Sheet but not available for distribution as dividend.
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11. Review of asset quality and performance of investments

All investments are made in accordance with the regulatory norms, the Investment Policy and the asset liability
management guidelines.
(a) Asset composition

Most of the Company’s investments are in fixed income securities, deposits and equities. The fixed income
securities are mainly approved Government securities and bonds rated AA and above. The primary aim
while investing is to generate adequate return while minimizing risk. The emphasis is also on the liquidity of
investments to ensure that the Company meets all its obligations related to Claims and other operations. The
Company monitors the cash position on daily basis and seasonal liquidity needs are considered while planning
maturities of investments in respect of all assets. Based on the past track record, the Management has reasonable
confidence in the quality and expected performance of all the investments.
The asset composition of investment assets of the Company as at 31 March 2021 is as follows:
(`’000)
Total investments
Asset class Amount %
Government securities 104,933,154 46.7%
Debenture and bonds
- AAA 91,622,243 40.8%
- AA / AA+ 230,894 0.1%
- AA - & Below 937,194 0.4%
Money Market Instruments 8,024,625 3.6%
Fixed Deposits 490,000 0.2%
Equities 16,527,244 7.4%
AT1 Bonds 1,678,880 0.7%
Others (preference shares) 330,068 0.1%
Total 224,774,302 100.0%
The Company has invested in well diversified investment portfolio. Substantial portion of the investments are
readily marketable thereby extending good liquidity support.
The Company maintains a strong quality of fixed income portfolio at all point of time. 99% of the fixed income
portfolio is held in highest credit rated securities (Sovereign/AAA or equivalent). 86% of the total equity
investments are held in Nifty 50 index stocks.
83
(b) Investment performance

The performance of investments for FY2021, is as follows:
FY2021 FY2020
Particulars Book value yields Market value yields Book value yields Market value yields
Including impairment 7.66% 10.98% 7.94% 7.87%
Excluding impairment 7.49% 10.82% 8.66% 8.58%
Notes:
a) Market Value yields computed as investment income/monthly average investment
b) Book value yields computed as investment income/monthly average investment
12. Payments made to parties in which Directors are interested

The schedule of payments which have been made to individuals, firms, companies and organizations in which the
Directors of the Company are interested is given as Annexure III.
13. Management responsibility statement

The Management of the Company certifies that:
a) The financial statements of the Company have been prepared in accordance with the applicable Accounting
Standards and principles and policies with no material departures;
b) The Management has adopted accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of the affairs of the
Company at the end of the financial year and of the operating profit and of the profit of the Company for the year;
c) The Management has taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the applicable provisions of the Insurance Act, 1938 and Companies Act, 2013 for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities;
d) The financial statements have been prepared on a going concern basis;
e) The Management has set up an internal audit system commensurate with the size and nature of the business and
the same was operational throughout the year.
For and on behalf of the Board of Directors

CIN U66010PN2000PLC015329
Sanjiv Bajaj Lila Poonawalla Ranjit Gupta

Chairman Chairperson of Director
DIN:00014615 Audit Committee DIN:00139465
DIN:00074392
Tapan Singhel Ramandeep Singh Sahni Onkar Kothari

Managing Director & Chief Financial Officer Company Secretary &
Chief Executive Officer Compliance Officer
DIN:03428746
Pune
Date: 23 April 2021
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Annexure I to Management Report: Average Claims Settlement Time during

Preceding 5 Years
1. FIRE
(Amounts in ` Lacs)
FY2017 FY2018 FY2019 FY2020 FY2021
No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount
Period Claims Claims Claims Claims Claims
30 days 1,405.00 837.72 1,537.00 672.60 3,791.00 4,326.52 3,106.00 6,862.91 2,897.00 5,385.00
30 days to 6 months 1,496.00 7,010.54 1,557.00 4,332.21 2,745.00 9,756.17 2,609.00 10,711.09 2,083.00 8,578.00
6 months to 1 year 845.00 9,064.51 500.00 8,467.52 705.00 10,592.20 672.00 9,966.51 529.00 14,056.00
1 year to 5 years 2,305.00 8,385.12 2,293.00 8,120.29 1,325.00 11,040.10 483.00 10,773.49 373.00 9,594.00
5 years and above 47.00 91.48 66.00 333.74 134.00 387.43 55.00 1,302.33 57.00 797.00
2. MARINE
30 days 9,982.00 1,139.03 9,242.00 954.65 35,435.00 1,856.87 15,094.00 2,597.63 13,409.00 2,632.00
30 days to 6 months 4,806.00 3,508.99 4,234.00 3,361.83 6,278.00 5,269.35 4,275.00 4,693.92 2,931.00 3,683.00
6 months to 1 year 751.00 2,797.84 514.00 1,420.75 635.00 4,255.80 729.00 2,476.84 318.00 1,177.00
1 year to 5 years 388.00 1,905.85 545.00 5,151.57 305.00 1,814.75 258.00 851.29 299.00 3,189.00
5 years and above 48.00 103.34 113.00 81.93 35.00 43.10 43.00 74.54 13.00 101.00
3. MOTOR OD
30 days 430,446.00 69,834.41 397,773.00 57,909.39 513,745.00 70,466.94 493,517.00 77,324.37 377,660.00 59,026.00
30 days to 6 months 72,732.00 53,200.41 92,215.00 46,913.49 71,186.00 44,894.89 63,136.00 47,646.62 48,525.00 38,479.00
6 months to 1 year 4,049.00 6,469.25 4,571.00 6,808.26 4,041.00 6,971.70 3,501.00 6,060.14 4,302.00 7,884.00
1 year to 5 years 1,435.00 1,362.20 1,391.00 1,229.39 1,317.00 1,425.12 740.00 1,179.91 1,278.00 2,402.00
5 years and above 392.00 200.71 548.00 144.58 1,342.00 299.81 217.00 249.27 139.00 129.00
4. MOTOR TP
30 days 5,674.00 63.12 4,567.00 74.54 5,042.00 189.80 285.00 119.92 354.00 193.00
30 days to 6 months 5,717.00 1,600.94 5,311.00 1,003.80 6,140.00 1,152.73 6,938.00 2,150.63 3,985.00 1,738.00
6 months to 1 year 4,338.00 4,242.63 5,370.00 3,690.24 4,563.00 3,381.23 4,742.00 6,409.60 3,283.00 2,531.00
1 year to 5 years 13,623.00 24,087.17 18,135.00 27,106.88 13,789.00 36,094.92 12,798.00 39,998.71 9,337.00 21,052.00
5 years and above 7,301.00 11,353.95 9,464.00 14,411.51 8,796.00 22,164.38 6,526.00 20,299.20 4,364.00 11,418.00
5. HEALTH
30 days 249,051.00 43,597.52 448,722.00 62,210.31 1,563,984.00 109,664.29 1,061,397.00 137,915.44 580,907.00 75,210.00
30 days to 6 months 65,643.00 26,599.94 80,046.00 27,786.68 135,098.00 53,727.20 133,919.00 51,418.70 102,034.00 60,546.00
6 months to 1 year 4,198.00 1,753.49 4,521.00 1,701.19 8,783.00 3,157.61 6,812.00 3,129.27 7,908.00 3,635.00
1 year to 5 years 1,496.00 937.69 1,759.00 770.23 2,980.00 1,269.09 1,692.00 1,472.07 3,073.00 2,118.00
5 years and above 194.00 22.19 401.00 32.10 85.00 69.88 41.00 79.69 64.00 135.00
6. OTHERS
30 days 36,914.00 6,748.19 73,906.00 82,228.11 240,213.00 86,822.55 3,120,901.00 162,404.93 1,831,523.00 186,053.00
30 days to 6 months 54,042.00 25,065.24 100,679.00 31,458.83 85,173.00 52,736.59 468,221.00 48,355.68 533,074.00 52,087.00
6 months to 1 year 9,243.00 4,882.32 10,401.00 5,018.77 6,200.00 20,202.68 29,569.00 8,319.74 73,174.00 10,891.00
1 year to 5 years 2,601.00 6,938.66 7,488.00 6,616.65 5,216.00 11,130.28 1,811.00 6,429.22 9,411.00 18,005.00
5 years and above 514.00 293.57 829.00 513.76 643.00 975.01 318.00 679.21 215.00 2,731.00
Note: The above includes partially settled claims and on-account payments made and excludes salvage and other recoveries
85
Annexure II: Ageing analysis of Claims registered and not settled

(Amounts in ` Lacs)
Line of Business FIRE MARINE MOTOR OD MOTOR TP HEALTH OTHER TOTAL
Ageing Count Amount Count Amount Count Amount Count Amount Count Amount Count Amount Count Amount
As at 31 March 2021
0 - 30 Days 311 1,329 189 580 3,638 4,580 1,736 13,446 27,641 6,316 50,332 2,849 83,847 29,101
31 days to 6 months 415 4,803 184 1,035 3,137 7,065 5,135 43,725 3,877 2,058 104,821 7,190 117,569 65,876
6 moths to 1 year 323 3,765 207 992 520 1,379 1,975 14,806 256 247 24,624 2,378 27,905 23,567
1 year to 5 years 994 5,312 1,059 1,499 1,580 4,614 25,255 178,176 640 1,218 45,917 6,737 75,445 197,555
> 5 years 1,134 3,558 376 1,694 1,177 2,740 16,888 53,960 191 586 2,769 3,975 22,535 66,513
Grand Total 3,177 18,767 2,015 5,800 10,052 20,378 50,989 304,113 32,605 10,425 228,463 23,129 327,301 382,612
As at 31 March 2020
0 - 30 Days 183 1,986 1,209 489 6,735 5,469 934 4,849 13,987 3,802 95,685 5,692 118,733 22,287
31 days to 6 months 401 6,290 305 1,422 5,512 11,629 5,954 38,746 10,257 1,589 53,552 6,332 75,981 66,008
6 moths to 1 year 395 2,382 287 446 762 2,394 5,001 34,692 332 383 13,492 2,728 20,269 43,025
1 year to 5 years 1,160 3,388 1,273 1,870 1,288 3,387 20,732 121,922 528 1,814 4,330 5,021 29,311 137,403
> 5 years 896 3,088 323 1,301 996 2,324 16,165 34,732 134 410 2,522 3,305 21,036 45,160
Grand Total 3,035 17,134 3,397 5,528 15,293 25,204 48,786 234,941 25,238 7,998 169,581 23,078 265,330 313,885
As at 31 March 2019
0 - 30 Days 179 1,466 347 669 4,331 4,438 1,113 5,161 39,332 6,430 34,802 2,791 80,104 20,955
31 days to 6 months 436 4,890 1,061 2,119 2,980 6,706 4,672 23,366 10,743 4,155 10,447 4,645 30,339 45,883
6 moths to 1 year 255 2,923 215 586 359 1,056 4,434 22,843 1,775 1,217 2,545 1,615 9,583 30,239
1 year to 5 years 1,730 2,733 751 1,457 1,113 2,641 21,339 109,413 423 1,693 2,711 3,703 28,067 121,641
> 5 years 356 2,478 240 947 847 1,893 16,527 24,901 108 194 2,081 2,832 20,159 33,245
Grand Total 2,956 14,491 2,614 5,778 9,630 16,733 48,085 185,685 52,381 13,688 52,586 15,587 168,252 251,963
As at 31 March 2018
0 - 30 Days 192 1,151 420 572 3,726 3,507 1,069 4,883 12,121 4,639 5,591 1,707 23,119 16,459
31 days to 6 months 338 3,209 204 1,359 2,752 6,273 4,229 19,716 4,516 2,516 2,642 2,928 14,681 36,002
6 moths to 1 year 186 1,445 73 312 453 1,111 4,506 20,677 1,849 1,381 3,699 4,031 10,766 28,957
1 year to 5 years 1,897 2,844 763 1,449 1,180 2,622 21,756 99,665 433 1,639 2,896 4,235 28,925 112,455
> 5 years 300 2,123 250 1,074 781 1,645 17,597 21,163 124 254 1,917 2,558 20,969 28,818
Grand Total 2,913 10,773 1,710 4,766 8,892 15,157 49,157 166,104 19,043 10,430 16,745 15,461 98,460 222,690
As at 31 March 2017
0 - 30 Days 228 626 1,650 597 3,440 3,700 1,185 4,808 5,077 2,761 5,565 2,275 17,145 14,768
31 days to 6 months 356 1,805 573 875 1,926 4,882 4,253 17,376 1,681 1,758 7,508 3,490 16,297 30,185
6 moths to 1 year 308 2,120 180 788 316 1,046 4,715 21,508 153 785 3,782 1,589 9,454 27,835
1 year to 5 years 2,551 3,055 399 1,141 1,083 2,286 21,410 82,092 275 1,122 5,701 4,757 31,419 94,454
> 5 years 228 1,901 189 900 703 1,380 17,026 18,724 119 281 1,669 2,359 19,934 25,546
Grand Total 3,671 9,506 2,991 4,302 7,468 13,295 48,589 144,508 7,305 6,707 24,225 14,470 94,249 192,788
86
04-37 40-88 90-161
Annexure III to the Management Report:

Particulars of Payments made to entities where Directors are interested for the year
ended 31 March 2021
(In ` Lakhs)
Payment during the year
Sr. No. Entity in which Director is interested Name of the Director Interested as FY2021 FY2020
1 Bajaj Finserv Limited Sanjiv Bajaj Director & Member
Niraj Bajaj Director & Member 3,303 858
Anami Roy Director
2 Bajaj Auto Limited Niraj Bajaj Director & Member
Sanjiv Bajaj Director & Member

55 165
Anami Roy Director
Lila Poonawalla Director
3 Bajaj Electricals Limited Niraj Bajaj Member

33 34
Sanjiv Bajaj Member
4 Bajaj Finance Limited Sanjiv Bajaj Director & Member

3,072 9,819
Anami Roy Director
5 Bajaj Allianz Life Insurance Company Limited Sanjiv Bajaj Director
Niraj Bajaj Director
Ranjit Gupta Director
Ritu Arora Director
Sergio Balbinot Director
Suraj Mehta Director

1,630 1,324
Lila Poonawalla Director
M. Damodaran Director
Anami Roy Director
Shashi Kant Sharma Director
Avais Karmali Director
T S Vijayan Director
87
(In ` Lakhs)
Payment during the year
Sr. No. Entity in which Director is interested Name of the Director Interested as FY2021 FY2020
6 Bajaj Housing Finance Limited Sanjiv Bajaj Director
Lila Poonawalla Director 9 2
Anami Roy Director
7 Bajaj Holdings and Investments Limited Sanjiv Bajaj Director & Member
Niraj Bajaj Director & Member 4 4
Anami Roy Director
8 Mukand Engineers Limited Sanjiv Bajaj Member

10 26
Niraj Bajaj Director & Member
9 Mukand Limited Sanjiv Bajaj Member

98 87
Niraj Bajaj Director & Member
10 Hind Musafir Agency Limited Niraj Bajaj Member 68 1,047
11 Corel Traders Private Limited Sanjiv Bajaj Relative is Director - 0
12 Hercules Hoists Limited Niraj Bajaj Member

7 2
Sanjiv Bajaj Member
13 Maharashtra Scooters Limited Sanjiv Bajaj Director 0 0
14 Bajaj Allianz Financial Distributors Limited Ritu Arora Director

172 1,522
15 Bajaj Allianz Staffing Solutions Limited Ritu Arora Director

8,586 10,752
16 Indo German Chamber of Commerce Tapan Singhel Director 8 10
Note: Includes payments in the nature of expenses and claims paid. Does not include capital transactions like Dividend payment, deposit payments, etc.
88
Financial
Statements
90-161
Independent Auditors’ Report

To the Members of Bajaj Allianz General Insurance Company Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the acCompanying financial statements of Bajaj Allianz General Insurance Company Limited (“the
Company”), which comprise the Balance Sheet as at 31 March 2021, the Revenue Account, the Profit and Loss Account
and the Receipts and Payments Statement for the year then ended, the schedules annexed thereto, notes to the financial
statements and a summary of significant accounting policies and other explanatory information (hereinafter referred to as
the financial statements).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required in accordance with the provisions of the Insurance Act, 1938 as amended by
the Insurance Laws (Amendment) Act, 2015 (the “Insurance Act”), the Insurance Regulatory and Development Authority
Act, 1999 (the “IRDA Act”), the Insurance Regulatory and Development Authority (Preparation of Financial Statements
and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “IRDA Financial Statements Regulations”), orders/
directions issued by the Insurance Regulatory and Development Authority of India (the “IRDAI”) in this regard and the
Companies Act, 2013 (the “Act”), to the extent applicable, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, as applicable to insurance companies:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2021;
(b) in the case of Revenue Account, of the operating profit for the year ended on that date;
(c) in the case of Profit and Loss Account, of the profit for the year ended on that date; and
(d) in the case of the Receipts and Payments Statement, of the receipts and payments for the year ended on that date.
Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
The Company’s Board of Directors is responsible for the Other Information. The other information comprises the Director’s
Report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the Other Information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of this Other Information, we are required to report that fact. We have nothing to report
in this regard.
Responsibility of Management and the Board of Directors for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these financial statements that give a true and fair view of the state of affairs, operating profit/loss, profit/
loss and the Receipts and Payments of the Company in accordance with the accounting principles generally accepted in
90
Financial Statements for the financial year ended 31 March 2021 Corporate Overview Statutory Reports Financial Statements
04-37 40-88 90-161
India, including the provisions of the Insurance Act, the IRDA Act, the IRDA Financial Statements Regulations, the orders/
directions/circulars issued by the IRDAI in this regard and Accounting Standards specified under section 133 of the Act, to
the extent applicable. This responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management and Board of Directors are responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and the operating effectiveness
of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
91
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
Other Matter
The actuarial valuation of liabilities in respect of Claims Incurred But Not Reported (IBNR) and Claims Incurred But Not
Enough Reported (IBNER) is the responsibility of the Company’s Appointed Actuary. The actuarial valuation of these
liabilities as at 31 March 2021 has been duly certified by the Appointed Actuary. The Appointed Actuary has also certified
that in his opinion, the assumptions for such valuation are in accordance with guidelines and norms, issued by the IRDAI
and the Institute of Actuaries of India in concurrence with the IRDAI. We have relied upon the Company’s Appointed
Actuary’s certificate in this regard for forming our opinion on the financials statements of the Company.
Our opinion is not modified in respect of this matter.
Report on other legal and regulatory requirements

1. As required by the IRDA Financial Statements Regulations, we have issued a separate certificate dated 23 April 2021
certifying the matters specified in paragraphs 3 and 4 of Schedule C to the IRDA Financial Statements Regulations.
2. As required by IRDA Financial Statements Regulations, read with section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit;
(b) In our opinion and to the best of our information and according to the explanations given to us, proper books
of account as required by law have been kept by the Company so far as it appears from our examination
of those books;
(c) As the Company’s financial accounting system is centralized at Head Office, no returns for the purposes of our
audit are prepared at the branches and other offices of the Company as required under section 143(8) of the Act;
(d) The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Statement
dealt with by this Report are in agreement with the books of account;
(e) In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
financial statements comply with Accounting Standards specified under section 133 of the Act to the extent they
are not inconsistent with the accounting principles prescribed in the IRDA Financial Statements Regulations and
orders/directions issued by the IRDAI in this regard;
(f) In our opinion and to the best of our information and according to the explanations given to us, investments have
been valued in accordance with the provisions of the Insurance Act, the IRDA
Financial Statements Regulations, the IRDA Act and/or orders/directions issued by the IRDAI in this regard;
(g) In our opinion and to the best of our information and according to the explanations given to us, the accounting
policies selected by the Company are appropriate and are in compliance with the applicable Accounting Standards
specified under section 133 of the Act to the extent they are not inconsistent with the accounting principles as
prescribed in the IRDA Financial Statements Regulations and orders/directions issued by the IRDAI in this regard;
(h) On the basis of the written representations received from the Directors as on 31 March 2021 taken on record
by the Board of Directors, none of the Directors is disqualified as on 31 March 2021 from being appointed as a
Director in terms of section 164 (2) of the Act;
92
04-37 40-88 90-161
(i) With respect to the adequacy of the internal financial controls over financial reporting of the Company with
reference to these financial statements and the operating effectiveness of such controls, refer to our separate
Report in “Annexure A” to this report;
(j) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31 March 2021 on its financial position in its
financial statements – Refer schedule 16 note 25 to the financial statements;
ii. The liability for insurance contracts, is determined by the Company’s Appointed Actuary as per Schedule 16
note 2.11, and is covered by the Appointed Actuary’s certificate, referred to in Other Matter paragraph above,
on which we have placed reliance; and the Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund
by the Company. Refer Schedule 16 note 27 to the financial statements.
iv. The disclosures in the standalone financial statements regarding holdings as well as dealings in specified bank
notes during the period from 8 November 2016 to 30 December 2016 have not been made in these financial
statements since they do not pertain to the financial year ended 31 March 2021.
(k) The remuneration paid by the Company to the directors is in accordance with and within the limits specified
in section 197 of the Act. We also refer to Note 9 to the financial statements which details the status of IRDAI
approval under section 34A of the IRDAI Act. The Ministry of Corporate Affairs has not prescribed other details
under section 197 (16) which are required to be commented upon by us.
For S.R. Batliboi & CO. LLP For B S R & Co. LLP
Chartered Accountants Chartered Accountants
Firm Registration Number Firm Registration Number
301003E/E300005 101248W/W-100022
per Vaibhav Kumar Gupta Sagar Lakhani

Partner Partner
Membership No. 213935 Membership No. 111855
ICAI UDIN: ICAI UDIN: 21111855AAAABX2791
21213935AAAABG1180 Place: Mumbai
Place: Pune Dated: 23 April 2021
Dated: 23 April 2021
93
Independent Auditors’ Certificate

The Board of Directors
Bajaj House, Airport Road, Yerawada,
Pune 411006
Independent Auditors’ Certificate as referred to in paragraph 1 of our Report on Other Legal and Regulatory
Requirements forming part of the Independent Auditors’ Report dated 23 April 2021
1. This certificate is issued to comply with the provisions of paragraph 3 and 4 of Schedule C of the Insurance Regulatory
and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies)
Regulations 2002, (“the IRDA Financial Statements Regulations”) read with Regulation 3 of the IRDA Financial
Statements Regulations and may not be suitable for any other purpose.
Management’s Responsibility
2. The Company’s Board of Directors is responsible for complying with the provisions of The Insurance Act, 1938 as
amended by the Insurance Laws (Amendment) Act, 2015 (the “Insurance Act”), the Insurance Regulatory and
Development Authority Act, 1999 (the “IRDA Act”), the IRDA Financial Statements Regulations, orders/directions
issued by the Insurance Regulatory and Development Authority of India (the “IRDAI”) which includes the preparation
and maintenance of books of accounts and the Management Report. This includes collecting, collating and validating
data and designing, implementing and monitoring of internal controls suitable for ensuring compliance as aforesaid
and applying an appropriate basis of preparation that are reasonable in the circumstances and providing all relevant
information to the IRDAI.
Independent Auditor’s Responsibility

3. Our responsibility for the purpose of this certificate, is to provide reasonable assurance on the matters contained in
paragraphs 3 and 4 of Schedule C of the IRDA Financial Statements Regulations read with Regulation 3 of the IRDA
Financial Statements Regulations.
4. We conducted our examination in accordance with the Guidance Note on Reports or Certificates for Special Purposes
(Revised 2016) issued by the Institute of Chartered Accountants of India (ICAI) in so far as applicable for the purpose of
this Certificate, which include the concepts of test checks and materiality. This Guidance Note requires that we comply
with the ethical requirements of the Code of Ethics issued by the ICAI.
5. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related
Services Engagements.
Opinion
6. In accordance with the information, explanations and representations given to us and to the best of our knowledge
and belief and based on our joint examination of the books of account and other records maintained by the Company
for the year ended 31 March 2021, we certify that:
a. We have reviewed the Management Report attached to the financial statements for the year ended 31
March 2021, and on the basis of our review, there is no apparent mistake or material inconsistency with the
financial statements;
b. Based on information and explanations received during the normal course of our audit, management
representations and compliance certificates submitted to the Board of Directors by the officers of the Company
charged with compliance and the same being noted by the Board, we certify that the Company has complied with
the terms and conditions of registration stipulated by the IRDAI;
c. We have verified the cash balances, to the extent considered necessary and securities relating to the Company’s
loans and investments as at 31 March 2021, by actual inspection or on the basis of certificates / confirmations
94
04-37 40-88 90-161
received from the Custodian and/ or Depository Participants appointed by the Company, as the case may be.
Further, we have also relied upon the management’s certificate for cash/cheque balances as at 31 March 2021;
d. We have been given to understand by the management that the Company is not a trustee of any trust; and
e. No part of the assets of the Policyholders’ Funds has been directly or indirectly applied in contravention to the
provisions of the Insurance Act, relating to the application and investments of the Policyholders’ Funds.
Restriction on Use
7. This certificate is issued at the request of the Company solely for use of the Company for inclusion in the annual
accounts in order to comply with the provisions of paragraph 3 and 4 of Schedule C of the IRDA Financial Statements
Regulations read with Regulation 3 of the IRDA Financial Statements Regulations and is not intended to be and should
not be used for any other purpose without our prior consent. Accordingly, we do not accept or assume any liability or
any duty of care for any other purpose or to any other person to whom this Certificate is shown or into whose hands it
may come without our prior consent in writing.
For S.R. Batliboi & CO. LLP For B S R & Co. LLP
301003E/E300005 101248W/W-100022

Partner Partner
ICAI UDIN: 21213935AAAABG1180 ICAI UDIN: 21111855AAAABX2791
Place: Pune Place: Mumbai
Dated: 23 April 2021 Dated: 23 April 2021
95
Annexure A to the Independent Auditors’ Report of even date to the members of

Bajaj Allianz General Insurance Company Limited, on the financial statements for
the year ended 31 March 2021
(Referred to in paragraph 2 (i) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)
Report on the internal financial controls with reference to the aforesaid financial statements
under Clause (i) of Sub-section 3 of section 143 of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls with reference to financial statements of Bajaj Allianz General Insurance
Company Limited (the “Company”) as of 31 March 2021 in conjunction with our audit of the financial statements of the
Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls

The Company’s Board of Directors is responsible for establishing and maintaining internal financial controls based on the
internal controls with reference to financial statements criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the “Guidance Note”) issued by the Institute of Chartered Accountants of India (“the ICAI”). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and
the timely preparation of reliable financial information, as required under the Companies Act, 2013 including the provisions
of the Insurance Act, 1938 as amended by the Insurance Laws (Amendment) Act, 2015 (the “Insurance Act”), the Insurance
Regulatory and Development Authority Act, 1999 (the “IRDA Act”), the IRDA Financial Statements Regulations, orders/
directions issued by the Insurance Regulatory and Development Authority of India (the “IRDAI”) in this regard.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on
Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls with reference to financial statements. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls with reference to financial statements were established and maintained and whether such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with
reference to financial statements included obtaining an understanding of
such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the Company’s internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements

A Company’s internal financial controls with reference to financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A Company’s internal financial control with reference to financial
statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in
96
04-37 40-88 90-161
accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company’s assets that could
have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial
statements to future periods are subject to the risk that the internal financial control with reference to financial statements
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial
statements and such internal financial controls were operating effectively as at 31 March 2021, based on the internal
financial controls with reference to financial statements criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by ICAI.
Other Matter
The actuarial valuation for claims Incurred But Not Reported (IBNR) and claims Incurred But Not Enough Reported (IBNER),
has been duly certified by the Company’s Appointed Actuary in accordance with the guidelines and norms issued by
the Insurance Regulatory and Development Authority of India (the “Authority”) and the Institute of Actuaries of India in
concurrence with the Authority, and has been relied upon by us, as mentioned in “Other Matter” paragraph of our audit
report on the financial statements of the Company as at and for the year ended 31 March 2021. Accordingly, our opinion on
the internal financial controls with reference to financial statements does not include reporting on the design and operating
effectiveness of internal controls over such actuarial liabilities. Our opinion is not modified in respect of this matter.
For S. R. BATLIBOI & CO. LLP For B S R & Co. LLP

301003E/E300005 101248W/W-100022

Partner Partner
ICAI UDIN: 21213935AAAABG1180 ICAI UDIN: 21111855AAAABX2791
Place: Pune Place: Mumbai

Dated: 23 April 2021 Dated: 23 April 2021
97

IRDA Registration No 113. dated 2 May 2001
Revenue Accounts for the year ended 31 March 2021
Rupees (‘000)
For the year ended 31 March 2021 For the year ended 31 March 2020
Particulars Schedule Fire Marine Miscellaneous Total Fire Marine Miscellaneous Total
Premiums earned - (Net) 1 2,691,988 1,068,110 70,601,204 74,361,302 2,679,557 1,173,990 78,208,275 82,061,822
Profit /(Loss) on sale/redemption of

investments (Refer note 2.3 (iv) and (v)
of Schedule 16) 61,636 23,840 1,563,478 1,648,954 67,563 24,380 1,696,252 1,788,195
Interest, dividend and rent-Gross (Refer
note 2.3 (ii) of Schedule 16) 384,408 148,680 9,750,935 10,284,023 384,505 138,749 9,653,501 10,176,755
Other income - Miscellaneous income 6,804 2,632 171,424 180,860 2,797 2,186 150,941 155,924
Contribution from Shareholders Funds
towards excess EoM & Rewards (Refer
note 39 of Schedule 16) - - 334,505 334,505 - 52,100 394,600 446,700
Sub total 452,848 175,152 11,820,342 12,448,342 454,865 217,415 11,895,294 12,567,574
Total (A) 3,144,836 1,243,262 82,421,546 86,809,644 3,134,422 1,391,405 90,103,569 94,629,396
Claims incurred (Net) (Refer note 2.10

2
and 2.11 of Schedule 16) 1,466,284 703,425 48,732,582 50,902,291 1,822,329 788,366 55,437,194 58,047,889
Commission (Refer note 2.3 (vi) and 2.6
3
of Schedule 16) (1,623,445) 84,661 2,032,510 493,726 (1,442,355) 151,058 2,207,634 916,337
Contribution to solatium fund (Refer note
2.20 of Schedule 16) - - 27,152 27,152 - - 31,311 31,311
Change in premium deficiency (Refer
note 2.9 and 10 of Schedule 16) - - - - - - - -
Operating expenses related to insurance
4
business (Refer note 2.12 of Schedule 16) 2,860,693 275,427 17,461,593 20,597,713 2,417,584 316,688 20,468,682 23,202,954
Total (B) 2,703,532 1,063,513 68,253,837 72,020,882 2,797,558 1,256,112 78,144,821 82,198,491
Operating profit/(loss) (C)=(A)-(B) 441,304 179,749 14,167,709 14,788,762 336,864 135,293 11,958,748 12,430,905
Appropriations
Transfer to shareholders' account 441,304 179,749 14,167,709 14,788,762 336,864 135,293 11,958,748 12,430,905
Transfer to catastrophe reserve - - - - - - - -
Transfer to other reserves - - - - - - - -
Total (C) 441,304 179,749 14,167,709 14,788,762 336,864 135,293 11,958,748 12,430,905
Significant accounting policies and
16
notes to the Financial Statements
The Schedules referred to above form an integral part of the Financial Statements
As per our report of even date attached For and on behalf of the Board of Directors of
For B S R & Co. LLP For S. R. Batliboi & Co. LLP Bajaj Allianz General Insurance Company Limited
Chartered Accountants Chartered Accountants CIN U66010PN2000PLC015329
101248W/W-100022 301003E/E300005 Sanjiv Bajaj Lila Poonawalla Ranjit Gupta
Chairman Chairperson of Audit Director
Sagar Lakhani Vaibhav Kumar Gupta DIN : 00014615 Committee DIN:00139465
Partner Partner DIN : 00074392
DIN : 03428746
Mumbai Pune Pune
Date: 23 April 2021 Date: 23 April 2021 Date: 23 April 2021
98
04-37 40-88 90-161

Profit and Loss Account for the year ended 31 March 2021
Rupees (‘000)
For the year ended For the year ended
Operating profit as per Revenue Accounts of

(a) Fire insurance 441,304 336,864
(b) Marine insurance 179,749 135,293
(c) Miscellaneous insurance 14,167,709 11,958,748
14,788,762 12,430,905
Income from investments (Refer note 2.3 (ii), (iii), (iv), (v) and 2.13 of Schedule 16)
(a) Interest, dividends and rent - Gross 3,071,216 2,554,135
(b) Amortization of discount/(premium) (477,999) (135,064)
(c) Profit on sale/redemption of investments 977,940 1,188,341
Less:- Loss on sale/redemption of investments (271,295) (201,049)
3,299,862 3,406,363
Other income -Miscellaneous income 3,635 83,335
Total (A) 18,092,259 15,920,603
Provisions (other than taxation)
(a) For diminution in the value of investments (Refer note 2.15 of Schedule 16) (340,409) 1,286,559
(b) For doubtful debts (14,370) 9,891
(c) Others - -
Other expenses
(a) Expenses other than those related to the insurance business 159,937 177,705
(b) Bad debts written off - -
(c) Fines & penalties (Refer note 23 of Schedule 16) - 900
(d) Corporate Social Responsibility (Refer note 28 of Schedule 16) 259,571 239,340
(e) Contribution to Policyholders Funds towards excess EoM & Rewards (Refer note 39 of Schedule 16) 334,505 446,700
(f) Others - -
Total (B) 399,234 2,161,095

Profit before tax 17,693,025 13,759,508
Provision for taxation (Refer note 18 of Schedule 16)
Current tax 5,016,744 2,866,644
Deferred tax Expense/(Income) (624,603) 905,094
4,392,141 3,771,738
Profit after tax 13,300,884 9,987,770
Profit available for appropriation 13,300,884 9,987,770
Appropriations
(a) Final dividends paid - 1,102,273
(b) Interim dividends paid (Refer note 31 of Schedule 16) 1,488,068 -
(c) Dividend distribution tax - 226,575
(d) Transfer to reserve/other accounts - -
Balance of Profit brought forward from last year 56,748,070 48,089,148
Balance carried forward to Balance Sheet 68,560,886 56,748,070
Significant accounting policies and notes to the Financial Statements 16

Earning per share: Basic and Diluted (Refer note 17 of Schedule 16) 120.67 90.61
DIN : 03428746
Mumbai Pune Pune
99

Balance Sheet as at 31 March 2021

Rupees (‘000)
As at As at
Particulars Schedule 31 March 2021 31 March 2020
SOURCES OF FUNDS
Share capital 5 1,102,273 1,102,273
Reserves and surplus 6 70,227,083 58,414,267
Fair value change account (Refer note 2.15 of Schedule 16)
Shareholders' funds 1,166,839 (905,121)
Policyholders' funds 2,748,420 (2,190,353)
Borrowings 7 - -
Total 75,244,615 56,421,066
APPLICATION OF FUNDS
Investments - Shareholders' 8 57,858,550 32,131,766
Investments - Policyholders' 8A 166,915,752 150,913,828
Loans 9 - -
Fixed assets 10 4,271,058 4,295,572
Deferred tax asset (Refer note 18 of Schedule 16) 1,262,560 637,957
Current assets
Cash and bank balances 11 6,833,941 5,759,677
Advances and other assets 12 22,578,481 24,918,301
Sub-Total (A) 29,412,422 30,677,978
Current liabilities 13 142,261,803 119,732,192
Provisions 14 42,213,924 42,503,843
Sub-Total (B) 184,475,727 162,236,035
Net current liabilities (C) = (A - B ) (155,063,305) (131,558,057)
Miscellaneous expenditure (to the extent not written off or adjusted) 15 - -
Debit balance in Profit and loss account - -
Total 75,244,615 56,421,066
For Contingent liabilities – (Refer note 2.23 and 3 of schedule 16)
Significant accounting policies and notes to the Financial Statements 16
DIN : 03428746
Mumbai Pune Pune
100
04-37 40-88 90-161
Receipts and Payments Statement for the year ended 31 March 2021
Rupees (‘000)
A. Cash Flows from the operating activities:

1. Premium received from policyholders, including advance receipts 140,403,316 147,885,351
2. Other receipts (7,685) 82,047
3. Payments to the re-insurers, net of commissions and claims (10,192,400) (17,514,119)
4. Payments to co-insurers, net of claims recovery 2,597,069 1,328,357
5. Payments of claims (62,799,165) (68,711,958)
6. Payments of commission and brokerage (7,692,329) (9,109,761)
7. Payments of other operating expenses (19,176,477) (24,192,294)
8. Preliminary and pre-operative expenses - -
9. Deposits, advances and staff loans 53,326 (10,220)
10. Income taxes paid (Net) (4,794,401) (3,049,622)
11. Service tax paid / GST Paid (15,518,743) (17,141,044)
12. Other payments - -
13. Cash flows before extraordinary items 22,872,511 9,566,737
14. Cash flow from extraordinary operations - -
15. Net cash flow from operating activities (A) 22,872,511 9,566,737
B. Cash flows from investing activities:
1. Purchase of fixed assets (497,512) (1,363,555)
2. Proceeds from sale of fixed assets 9,823 9,134
3. Purchases of investments (215,066,259) (184,643,105)
4. Loans disbursed - -
5. Sales of investments 183,409,931 165,816,707
6. Repayments received - -
7. Rent / interest / dividend received 13,246,907 12,082,209
8. Investment in money market instruments and liquid mutual funds (net) 299,845 (620,124)
9. Expenses related to investments (43,722) (76,442)
10. Net cash flow from investing activities (B) (18,640,987) (8,795,176)
C. Cash flows from financing activities:
1. P
roceeds from issuance of Share Capital / Application Money (including Share Premium and net of Share Issue
- -
Expenses)
2. Proceeds from Borrowings - -
3. Repayment of Borrowings - -
4. Interest and Dividends Paid (1,488,068) (1,102,273)
5. Dividend distribution tax - (226,575)
6. Net Cash Flows from financing activities (C)' (1,488,068) (1,328,848)
D. Effect of foreign exchange rates on cash and cash equivalents, net (D) (2,720) 24,576
E. Net increase in cash and cash equivalents (E) = (A)+(B)+(C)+(D) 2,740,736 (532,711)
Add: Cash and cash equivalents at the beginning of the year 3,929,965 4,462,676
Cash and cash equivalents at the end of the year 6,670,701 3,929,965
F. Components of cash and cash equivalents at the end of the year
(a) Cash (including Stamps on hand) - (Refer Schedule 11 forming part of financial statements) 3,628 9,646
(b) Cheques on hand - (Refer Schedule 11 forming part of financial statements) 432,155 811,784
(c) Bank balances - (Refer Schedule 11 forming part of financial statements) 4,140,853 3,117,727
(d) Money at call and short notice (only due within 3 months) - (Refer Schedule 11 forming part of financial
2,200,270 1,338,031
statements)
(e) Temporary overdraft as per books of accounts - (Refer Schedule 13 forming part of financial statements) (106,205) (1,347,223)
Cash and cash equivalents at the end of the year (a)+(b)+(c)+(d)+(e) 6,670,701 3,929,965
Add: Fixed Deposits maturing after 3 Months 57,035 482,489
Add: Temporary overdraft as per books of accounts - (Refer Schedule 13 forming part of financial statements) 106,205 1,347,223
Cash and Bank balance as per Balance Sheet (Refer Schedule 11 forming part of financial statements) 6,833,941 5,759,677
For Cash and cash equivalents – Refer note 2.25 of schedule 16

The above Receipts and Payments Account has been prepared as prescribed by Insurance Regulatory and Development Authority (Preparation of Financial
Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 under the ‘Direct method’ in accordance with Accounting Standard 3 on Cash
Flow Statements notified under the section 133 of the Companies Act, 2013 read with paragraph 7 of the Companies (Accounts) Rules, 2016.
DIN : 03428746
Mumbai Pune Pune
101
Schedule - 1 Premium earned (Net)

Schedules to and forming part of the Financial Statements
Rupees (‘000)
Fire Marine Miscellaneous* Total Fire Marine Miscellaneous* Total
Particulars Cargo Others Cargo Others
Premium from
direct business
16,565,498 1,558,369 105,105 107,466,318 125,695,290 12,256,592 1,660,336 106,130 113,774,654 127,797,712
written (net of
service tax and GST)
Add: Premium on
492,170 - - 56,328 548,498 472,918 - - 60,026 532,944
reinsurance accepted
Less: Premium on
14,267,366 481,163 103,087 37,219,623 52,071,239 11,291,736 539,041 103,492 36,236,763 48,171,032
reinsurance ceded
Net Premium 2,790,302 1,077,206 2,018 70,303,023 74,172,549 1,437,774 1,121,295 2,638 77,597,917 80,159,624
Adjustment for
change in reserve for
unexpired risk
Reserve created
2,896,281 300,889 2,017 38,460,638 41,659,825 2,797,967 289,155 2,637 38,758,819 41,848,578
during the year
Less: Reserve created

during the previous 2,797,967 289,155 2,637 38,758,819 41,848,578 4,039,750 338,610 3,239 39,369,177 43,750,776
year written back
Change in the
unexpired risk reserve
98,314 11,734 (620) (298,181) (188,753) (1,241,783) (49,455) (602) (610,358) (1,902,198)
(Refer note 2.8 of
Schedule 16)
Total premium
2,691,988 1,065,472 2,638 70,601,204 74,361,302 2,679,557 1,170,750 3,240 78,208,275 82,061,822
earned (Net)
Note :
Premium income
earned from
business concluded:
In India 2,691,988 1,065,472 2,638 70,601,204 74,361,302 2,679,557 1,170,750 3,240 78,208,275 82,061,822
Outside India - - - - - - - - - -
Total premium
2,691,988 1,065,472 2,638 70,601,204 74,361,302 2,679,557 1,170,750 3,240 78,208,275 82,061,822
earned (Net)
* Refer Schedule 1(A) for detailed segmental information for Miscellaneous lines of businesses
Refer note 2.3 (i) and 2.5 of schedule 16 for accounting policy related to Premium income and Reinsurance accepted
102
04-37 40-88 90-161
Schedule - 1(A) Premium earned (Net)

Rupees (‘000)
For the year ended 31 March 2021
Workmens'
Compensation Public/
Motor /Employers' Product Personal Health Credit Crop
Particulars Motor OD Motor TP Total Liability Liability Engineering Aviation Accident Insurance Insurance Insurance Others Total
Premium from
direct business
20,111,584 27,151,735 47,263,319 463,931 400,953 2,208,109 176,934 2,015,864 21,001,526 130,702 25,563,816 8,241,164 107,466,318
(net of service
tax and GST)
Add: Premium
on reinsurance - - - - - 48,129 - - - - - 8,199 56,328
accepted
Less: Premium
on reinsurance 1,135,982 2,799,220 3,935,202 31,210 257,710 2,009,049 174,473 146,487 4,525,180 129,395 20,790,619 5,220,298 37,219,623
ceded
Net Premium 18,975,602 24,352,515 43,328,117 432,721 143,243 247,189 2,461 1,869,377 16,476,346 1,307 4,773,197 3,029,065 70,303,023
Adjustment
for change in
reserve for
unexpired risk
Reserve created
11,138,805 14,187,495 25,326,300 183,746 81,030 154,685 306 1,278,455 8,367,972 400 297,503 2,770,241 38,460,638
during the year
Less: Reserve
created during
the previous 10,342,744 15,264,108 25,606,852 185,899 67,103 145,597 79,074 1,553,156 7,983,052 351 246,496 2,891,239 38,758,819
year written
back
Change in the
unexpired risk
reserve (Refer 796,061 (1,076,613) (280,552) (2,153) 13,927 9,088 (78,768) (274,701) 384,920 49 51,007 (120,998) (298,181)
note 2.8 of
Schedule 16)
Total premium
18,179,541 25,429,128 43,608,669 434,874 129,316 238,101 81,229 2,144,078 16,091,426 1,258 4,722,190 3,150,063 70,601,204
earned (Net)
Note :
Premium
income earned
from business
concluded:
In India 18,179,541 25,429,128 43,608,669 434,874 129,316 238,101 81,229 2,144,078 16,091,426 1,258 4,722,190 3,150,063 70,601,204
Outside India - - - - - - - - - - - - -
Total premium
18,179,541 25,429,128 43,608,669 434,874 129,316 238,101 81,229 2,144,078 16,091,426 1,258 4,722,190 3,150,063 70,601,204
earned (Net)
103
Rupees (‘000)
Workmens'
Premium from direct

business (net of 20,993,836 31,311,365 52,305,201 509,576 427,826 1,526,628 260,480 2,734,018 22,014,030 119,451 24,813,790 9,063,654
113,774,654
service tax and GST)
Add: Premium on
- - - - - 58,409 - - - - - 1,617 60,026
reinsurance accepted
Less: Premium on
1,137,261 1,610,973 2,748,234 33,443 294,982 1,309,488 153,160 162,451 5,331,369 118,256 19,588,855 6,496,525 36,236,763
reinsurance ceded
Net Premium 19,856,575 29,700,392 49,556,967 476,133 132,844 275,549 107,320 2,571,567 16,682,661 1,195 5,224,935 2,568,746 77,597,917
Adjustment for change in

reserve for unexpired risk
Reserve created during

10,342,744 15,264,108 25,606,852 185,899 67,103 145,597 79,074 1,553,156 7,983,052 351 246,496 2,891,239 38,758,819
the year
Less: Reserve created

during the previous year 10,723,350 14,211,738 24,935,088 186,974 69,048 162,575 70,775 1,426,267 8,636,267 400 396,912 3,484,871 39,369,177
written back
Change in the unexpired

risk reserve (Refer note (380,606) 1,052,370 671,764 (1,075) (1,945) (16,978) 8,299 126,889 (653,215) (49) (150,416) (593,632) (610,358)
2.8 of Schedule 16)
Total premium earned

20,237,181 28,648,022 48,885,203 477,208 134,789 292,527 99,021 2,444,678 17,335,876 1,244 5,375,351 3,162,378 78,208,275
(Net)
Note :
Premium income
earned from business
concluded:
In India 20,237,181 28,648,022 48,885,203 477,208 134,789 292,527 99,021 2,444,678 17,335,876 1,244 5,375,351 3,162,378 78,208,275
Outside India - - - - - - - - - - - - -
Total premium earned

20,237,181 28,648,022 48,885,203 477,208 134,789 292,527 99,021 2,444,678 17,335,876 1,244 5,375,351 3,162,378 78,208,275
(Net)
Refer note 2.3 (i) and 2.5 of Schedule 16 for accounting policy related to Premium income and Reinsurance accepted
104
04-37 40-88 90-161
Schedule - 2 Claims incurred (Net)

Rupees (‘000)
Marine Marine
Particulars Fire Cargo Others Miscellaneous* Total Fire Cargo Others Miscellaneous* Total
Claims Paid
Direct 3,591,541 1,074,193 3,301 55,958,984 60,628,019 3,918,133 1,020,179 1,176 62,429,761 67,369,249
Add: Re-insurance
185,026 374 - 8,357 193,757 41,894 5,704 - 12,607 60,205
Accepted
Less: Re-insurance
2,544,872 416,358 3,280 23,776,738 26,741,248 2,406,584 254,361 1,168 21,830,000 24,492,113
Ceded
Net Claims paid 1,231,695 658,209 21 32,190,603 34,080,528 1,553,443 771,522 8 40,612,368 42,937,341
Claims
Outstanding
(including IBNR
and IBNER)
Add : Claims
Outstanding at
the close of the 2,012,137 743,830 15,768 97,631,009 100,402,744 1,777,548 699,250 15,153 81,089,030 83,580,981
year (net of Re-
insurance)
Less: Claims
Outstanding at the
beginning of the 1,777,548 699,250 15,153 81,089,030 83,580,981 1,508,662 683,089 14,478 66,264,204 68,470,433
year (net of Re-
insurance)
Change in Claims
234,589 44,580 615 16,541,979 16,821,763 268,886 16,161 675 14,824,826 15,110,548
Outstanding
Total Claims
1,466,284 702,789 636 48,732,582 50,902,291 1,822,329 787,683 683 55,437,194 58,047,889
Incurred (Net)
Claims incurred
In India 1,466,284 702,789 636 48,732,582 50,902,291 1,822,329 787,683 683 55,437,194 58,047,889
Outside India - - - - - - - - - -
Total Claims
1,466,284 702,789 636 48,732,582 50,902,291 1,822,329 787,683 683 55,437,194 58,047,889
Incurred (Net)
Refer note 2.10 and 2.11 of Schedule 16 for Claims incurred and Claims incurred but not reported and claims incurred but not enough reported
105
Schedule - 2(A) Claims incurred (Net)

Rupees (‘000)
Workmens'
Claims paid
Direct 10,927,389 3,865,117 14,792,506 142,256 238,615 656,910 222,513 852,209 14,198,366 45,635 21,379,348 3,430,626 55,958,984
Add: Reinsurance
- - - - - 4,865 - 3,489 - - - 3 8,357
accepted
Less: Reinsurance
640,327 715,069 1,355,396 7,219 235,332 432,484 99,653 60,095 2,133,405 45,179 17,014,524 2,393,451 23,776,738
ceded
Net claims paid 10,287,062 3,150,048 13,437,110 135,037 3,283 229,291 122,860 795,603 12,064,961 456 4,364,824 1,037,178 32,190,603
Claims
outstanding
(including IBNR
and IBNER)
Add : Claims
outstanding
at the close of 2,740,200 84,462,451 87,202,651 284,782 120,940 109,579 189,251 1,306,609 3,652,898 800 2,912,705 1,850,794 97,631,009
the year (net of
reinsurance)
Less: Claims
outstanding at
the beginning of 3,216,845 67,743,810 70,960,655 244,764 88,157 252,860 120,483 1,154,558 2,567,306 1,182 4,068,249 1,630,816 81,089,030
the year (net of
reinsurance)
Change in claims
(476,645) 16,718,641 16,241,996 40,018 32,783 (143,281) 68,768 152,051 1,085,592 (382) (1,155,544) 219,978 16,541,979
outstanding
Total claims
9,810,417 19,868,689 29,679,106 175,055 36,066 86,010 191,628 947,654 13,150,553 74 3,209,280 1,257,156 48,732,582
incurred (Net)
Claims incurred
In India
9,810,417 19,868,689 29,679,106 175,055 36,066 86,010 191,628 947,654 13,150,553 74 3,209,280 1,257,156 48,732,582
Outside India - - - - - - - - - - - - -
Total claims
9,810,417 19,868,689 29,679,106 175,055 36,066 86,010 191,628 947,654 13,150,553 74 3,209,280 1,257,156 48,732,582
incurred (Net)
106
04-37 40-88 90-161
Rupees (‘000)
Workmens'
Claims paid
Direct 13,460,133 6,935,038 20,395,171 133,617 132,768 497,637 155,704 1,098,538 19,455,016 44,128 17,922,628 2,594,554 62,429,761
Add: Reinsurance
- - - - - 10,099 - - 2,508 - - - 12,607
accepted
Less: Reinsurance
729,334 1,358,532 2,087,866 6,977 128,831 398,038 93,454 111,805 4,074,197 43,687 13,617,246 1,267,899 21,830,000
ceded
Net claims paid 12,730,799 5,576,506 18,307,305 126,640 3,937 109,698 62,250 986,733 15,383,327 441 4,305,382 1,326,655 40,612,368
Claims
outstanding
(including IBNR
and IBNER)
Add : Claims
outstanding
at the close of 3,216,845 67,743,810 70,960,655 244,764 88,157 252,860 120,483 1,154,558 2,567,306 1,182 4,068,249 1,630,816 81,089,030
the year (net of
reinsurance)
Less: Claims
outstanding at
the beginning of 2,242,582 54,843,578 57,086,160 183,487 82,533 208,077 29,543 773,377 3,105,747 784 3,430,695 1,363,801 66,264,204
the year (net of
reinsurance)
Change in claims
974,263 12,900,232 13,874,495 61,277 5,624 44,783 90,940 381,181 (538,441) 398 637,554 267,015 14,824,826
outstanding
Total claims
13,705,062 18,476,738 32,181,800 187,917 9,561 154,481 153,190 1,367,914 14,844,886 839 4,942,936 1,593,670 55,437,194
incurred (Net)
Claims incurred
In India 13,705,062 18,476,738 32,181,800 187,917 9,561 154,481 153,190 1,367,914 14,844,886 839 4,942,936 1,593,670 55,437,194
Outside India - - - - - - - - - - - - -
Total claims
13,705,062 18,476,738 32,181,800 187,917 9,561 154,481 153,190 1,367,914 14,844,886 839 4,942,936 1,593,670 55,437,194
incurred (Net)
Refer note 2.10 and 2.11 of Schedule 16 for Claims incurred and Claims incurred but not reported and claims incurred but not enough reported
107
Schedule - 3 Commission
Rupees (‘000)
Fire Marine Miscellaneous* Total Fire Marine Miscellaneous* Total
Particulars Cargo Others Cargo Others
Commission paid direct 1,329,364 139,078 (500) 6,485,947 7,953,889 1,074,635 205,459 2,368 6,992,744 8,275,206
Add: Reinsurance
52,504 - - 7,261 59,765 44,308 - - 8,079 52,387
accepted
Less: Commission on
3,005,313 49,318 4,599 4,460,698 7,519,928 2,561,298 48,361 8,408 4,793,189 7,411,256
reinsurance ceded
Net commission (1,623,445) 89,760 (5,099) 2,032,510 493,726 (1,442,355) 157,098 (6,040) 2,207,634 916,337
Break-up of commission
paid direct :
Agents 181,532 70,353 17 1,839,305 2,091,207 154,839 77,953 412 2,061,518 2,294,722
Brokers 585,508 64,920 (586) 2,987,421 3,637,263 401,116 122,252 1,856 2,702,089 3,227,313
Corporate agency 558,042 3,554 69 1,458,979 2,020,644 517,853 5,235 100 2,031,167 2,554,355
Referral - - - - - - - - - -
Others 4,282 251 - 200,242 204,775 827 19 - 197,970 198,816
Total 1,329,364 139,078 (500) 6,485,947 7,953,889 1,074,635 205,459 2,368 6,992,744 8,275,206
Commission paid
In India (1,623,445) 89,760 (5,099) 2,032,510 493,726 (1,442,355) 157,098 (6,040) 2,207,634 916,337
Outside India - - - - - - - - - -
Net commission (1,623,445) 89,760 (5,099) 2,032,510 493,726 (1,442,355) 157,098 (6,040) 2,207,634 916,337
*Refer Schedule 3(A) for detailed segmental information for Miscellaneous lines of businesses
108
04-37 40-88 90-161
Schedule - 3(A) Commission

Rupees (‘000)
Workmens'
Commission
3,287,961 306,864 3,594,825 59,025 33,352 155,963 8,261 234,933 1,685,028 7,579 1,340 705,641 6,485,947
paid direct
Add: Re-
insurance - - - - - 6,204 - - - - - 1,057 7,261
accepted
Less:
Commission on
166,874 1,090,698 1,257,572 4,845 26,455 313,076 7,992 17,305 874,472 11,768 1,141,878 805,335 4,460,698
re-insurance
ceded
Net
3,121,087 (783,834) 2,337,253 54,180 6,897 (150,909) 269 217,628 810,556 (4,189) (1,140,538) (98,637) 2,032,510
commission
Commission
paid
In India
3,121,087 (783,834) 2,337,253 54,180 6,897 (150,909) 269 217,628 810,556 (4,189) (1,140,538) (98,637) 2,032,510
Outside India
- - - - - - - - - - - - -
Net
3,121,087 (783,834) 2,337,253 54,180 6,897 (150,909) 269 217,628 810,556 (4,189) (1,140,538) (98,637) 2,032,510
commission
Rupees (‘000)
Workmens'
Motor Motor /Employers' Product Personal Health Credit Crop
Particulars Motor OD TP Total Liability Liability Engineering Aviation Accident Insurance Insurance Insurance Others Total
Commission
3,429,803 292,816 3,722,619 63,056 29,493 121,618 5,669 313,603 1,640,757 1,691 1,062 1,093,176 6,992,744
paid direct
Add: Re-
insurance - - - - - 7,926 - - - - - 153 8,079
accepted
Less:
Commission on
(6,579) 79,220 72,641 5,040 25,041 226,826 6,338 20,530 1,166,970 8,247 977,486 2,284,070 4,793,189
re-insurance
ceded
Net
3,436,382 213,596 3,649,978 58,016 4,452 (97,282) (669) 293,073 473,787 (6,556) (976,424) (1,190,741) 2,207,634
commission
Commission
paid
In India 3,436,382 213,596 3,649,978 58,016 4,452 (97,282) (669) 293,073 473,787 (6,556) (976,424) (1,190,741) 2,207,634
Outside India - - - - - - - - - - - - -
Net
3,436,382 213,596 3,649,978 58,016 4,452 (97,282) (669) 293,073 473,787 (6,556) (976,424) (1,190,741) 2,207,634
commission
109
Schedule - 4 Operating expenses related to insurance business

Rupees (‘000)
Marine Marine
Particulars Fire Cargo Others Miscellaneous* Total Fire Cargo Others Miscellaneous* Total
Employees' remuneration,
benefits and other manpower
costs (Net) (Refer note 2.16 and 19
of Schedule 16 ) 1,179,337 82,923 4,363 6,720,795 7,987,418 1,121,807 110,010 5,742 8,324,373 9,561,932
Travel, conveyance and vehicle
running expenses 4,808 1,771 4 131,272 137,855 14,160 4,558 22 380,100 398,840
Training expenses 318 123 - 8,283 8,724 562 202 - 14,426 15,190
Rents, rates and taxes 12,937 4,995 9 333,851 351,792 13,881 4,997 12 353,184 372,074
Repairs and maintenance 4,068 1,570 3 111,843 117,484 4,835 1,741 4 129,957 136,537
Printing and stationery 3,229 392 - 67,963 71,584 9,503 1,426 1 237,110 248,040
Communication 5,652 686 - 121,335 127,673 13,185 1,979 1 323,796 338,961
Legal and professional charges 5,051 1,950 4 131,172 138,177 5,136 1,849 4 132,173 139,162
Auditors' fees, expenses, etc.
(Refer note 37 of Schedule 16)
(a) as auditors 299 115 - 7,586 8,000 302 109 - 7,589 8,000
(b) as advisor or in any other
capacity in respect of: - - - - - - - - - -
(i) Taxation matters - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - -
(iii) Management services - - - - - - - - - -
(iv) Tax audit 34 13 - 853 900 34 12 - 854 900
(c) In any other capacity 113 43 - 2,854 3,010 119 43 - 2,988 3,150
(d) Out of pocket expenses 26 10 - 648 684 76 27 - 1,904 2,007
Advertisement and publicity (Refer
note 41 of Schedule 16) 132,358 16,816 728 1,072,436 1,222,338 25,638 9,230 21 786,582 821,471
Interest and bank charges 9,982 3,854 7 256,049 269,892 9,866 3,552 8 252,790 266,216
Business development and
promotion (Refer note 41 of
Schedule 16) 220,021 20,101 1,356 1,037,263 1,278,741 201,390 25,119 1,717 1,248,764 1,476,990
Marketing and support services 1,166,747 106,593 7,189 5,500,506 6,781,035 895,870 116,850 7,469 6,086,921 7,107,110
Other acquisition costs 44,136 1,772 355 133,662 179,925 35,120 1,810 289 198,184 235,403
Others
Exchange (gain) /loss (net) 669 258 - 16,982 17,909 (749) (270) (1) (18,814) (19,834)
Other office running expenses
(Refer note 41 of Schedule 16) 12,323 4,754 9 318,607 335,693 17,034 6,043 16 471,197 494,290
Miscellaneous expenses (Refer
note 41 of Schedule 16) 2,075 800 1 53,640 56,516 3,304 1,172 3 91,397 95,876
Loss/(Profit) on disposal of assets
(net) 347 134 - 8,814 9,295 (126) (45) - (3,185) (3,356)
Information technology 37,661 4,570 1 773,165 815,397 27,829 4,177 2 669,579 701,587
Depreciation (refer note 2.14 of
Schedule 16) 18,502 7,143 13 476,175 501,833 18,808 6,771 16 478,359 503,954
GST /Service tax - - - 175,839 175,839 - - - 298,454 298,454
Total 2,860,693 261,386 14,042 17,461,593 20,597,714 2,417,584 301,362 15,326 20,468,682 23,202,954
(Refer note 2.12 and 41 of Schedule 16)

110
04-37 40-88 90-161
Schedule - 4 (A) Operating expenses related to insurance business

Rupees (‘000)
Workmens'
benefits and other manpower
1,639,698 2,125,252 3,764,950 27,978 18,724 106,418 8,136 173,550 1,743,487 5,302 191,213 681,036 6,720,795
costs (Net) (Refer note 2.16
and 19 of Schedule 16 )
Travel, conveyance and vehicle 31,573 41,390 72,963 707 236 423 6 3,665 29,754 3 17,990 5,525 131,272
running expenses
Training expenses 2,164 2,832 4,996 49 16 28 - 213 1,879 - 754 348 8,283
Rents, rates and taxes 87,982 115,120 203,102 2,006 664 1,146 11 8,668 76,523 6 27,680 14,045 333,851
Repairs and maintenance 27,664 36,197 63,861 631 209 360 4 2,725 24,154 2 15,481 4,416 111,843
Printing and stationery 9,530 12,866 22,396 76 7 24 - 14,504 10,253 - 6,504 14,199 67,963
Communication 16,681 22,520 39,201 132 13 43 1 25,387 21,177 - 10,530 24,851 121,335
Legal and professional charges 34,347 44,941 79,288 783 259 447 4 3,384 31,262 2 10,260 5,483 131,172
Auditors' fees, expenses, etc.

(Refer note 37 of Schedule 16) -
(a) as auditor 2,034 2,661 4,695 46 15 26 - 200 1,766 - 512 326 7,586
(b) as advisor or in any other -

capacity in respect of:
(i) Taxation matters - - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - - -
(iii) Management services - - - - - - - - - - - - -
(iv) Tax Audit 229 299 528 5 2 3 - 23 199 - 58 35 853
(c) In any other capacity 765 1,001 1,766 17 6 10 - 75 664 - 192 124 2,854
(d) Out of pocket expenses 174 227 401 4 1 2 - 17 151 - 44 28 648
Advertisement and publicity 246,173 327,812 573,985 5,650 3,557 16,807 1,221 24,488 227,266 899 144,903 73,660 1,072,436
Interest and bank charges 67,883 88,821 156,704 1,548 512 884 9 6,687 61,318 5 17,546 10,836 256,049
Business development and 259,412 350,220 609,632 5,984 5,172 29,102 2,282 26,002 250,999 1,686 - 106,404 1,037,263
promotion (Refer note 41 of
Schedule 16)
Marketing and support services 1,375,635 1,857,182 3,232,817 31,733 27,425 154,327 12,102 137,885 1,331,020 8,940 - 564,257 5,500,506
Other acquisition costs 35,298 47,654 82,952 29 219 4,584 7,836 196 27,080 - (1,984) 12,750 133,662
Others - -
Exchange (gain) /loss (net) 4,552 5,957 10,509 104 34 59 1 448 3,953 - 1,145 729 16,982
Other office running expenses 84,561 109,689 194,250 1,910 633 1,092 11 8,243 72,949 6 26,148 13,365 318,607
Miscellaneous expenses (Refer 14,237 18,467 32,704 321 106 184 2 1,388 12,282 1 4,402 2,250 53,640
note 41 of Schedule 16)
Loss/(Profit) on disposal of 2,363 3,091 5,454 54 18 31 - 233 2,051 - 594 379 8,814
assets (net)
Information technology 111,156 150,066 261,222 883 83 284 5 169,168 120,060 1 55,853 165,606 773,165
Depreciation (refer note 2.14 of 125,824 164,634 290,458 2,869 950 1,639 16 12,396 110,099 9 37,654 20,085 476,175
Schedule 16)
GST /Service tax 36,922 47,384 84,306 - - - - 1,621 17,281 - 69,245 3,386 175,839
Total 4,216,857 5,576,283 9,793,140 83,519 58,861 317,923 31,647 621,166 4,177,627 16,862 636,724 1,724,123 17,461,593
111
Rupees (‘000)
Workmens'
benefits and other
manpower costs (Net) 1,973,763 2,885,212 4,858,975 36,515 25,241 97,528 14,646 256,079 2,015,804 6,470 220,682 792,433 8,324,373
(Refer note 2.16 and 19 of
Schedule 16 )
Travel, conveyance and 88,983 130,675 219,658 1,889 554 1,230 439 12,707 76,801 17 49,913 16,892 380,100
vehicle running expenses
Training expenses 3,584 5,360 8,944 86 24 50 19 464 3,011 - 1,256 572 14,426
Rents, rates and taxes 88,490 132,359 220,849 2,122 592 1,228 478 11,460 74,528 5 27,798 14,124 353,184
Repairs and maintenance 30,826 46,108 76,934 739 206 428 167 3,992 26,168 2 16,400 4,921 129,957
Printing and stationery 32,055 47,808 79,863 244 22 96 37 25,775 39,252 - 41,875 49,946 237,110
Communication 44,474 66,331 110,805 338 31 133 52 35,761 50,833 1 56,545 69,297 323,796
Legal and professional 32,744 48,977 81,721 785 219 454 177 4,241 28,713 2 10,633 5,228 132,173
charges
Auditors' fees, expenses,

etc.(Refer note 37 of
Schedule 16)
(a) as auditor 1,927 2,882 4,809 46 13 27 10 250 1,619 - 507 308 7,589
(b) as advisor or in - - - - - - - - - - - -
any other capacity in
respect of:
(i) Taxation matters - - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - - -
(iii) Management - - - - - - - - - - - - -
services
(iv) Tax Audit 217 324 541 5 1 3 1 28 182 - 57 36 854
(c) In any other 759 1,135 1,894 18 5 11 4 98 637 - 200 121 2,988
capacity
(d) Out of pocket 483 723 1,206 12 3 7 3 63 406 - 127 77 1,904

expenses
Advertisement and 163,443 244,470 407,913 3,919 1,094 2,268 884 21,167 138,429 10 184,811 26,087 786,582
publicity (Refer note 41 of
Schedule 16)
Interest and bank charges 62,897 94,078 156,975 1,508 421 873 340 8,146 57,586 4 16,897 10,040 252,790
Business development 308,482 459,949 768,431 7,497 6,723 25,257 4,050 40,196 288,867 1,935 (36,084) 141,892 1,248,764
and promotion (Refer
note 41 of Schedule 16)
Marketing and support 1,477,491 2,203,612 3,681,103 35,863 30,109 111,551 18,332 192,413 1,371,154 8,407 - 637,989 6,086,921
services
Other acquisition costs 13,019 19,473 32,492 15 139 2,578 6,792 7,666 48,837 - 89,522 10,143 198,184
Others
Exchange (gain) /loss (4,777) (7,146) (11,923) (115) (32) (66) (26) (619) (4,014) - (1,257) (762) (18,814)
(net)
Other office running 110,451 163,752 274,203 2,556 717 1,499 578 14,214 90,255 8 69,210 17,955 471,197
expenses (Refer note 41
of Schedule 16)
Miscellaneous expenses 21,424 31,763 53,187 496 139 291 112 2,757 17,507 2 13,425 3,483 91,397
(Refer note 41 of
Schedule 16)
Loss/(Profit) on disposal (800) (1,197) (1,997) (19) (5) (11) (4) (104) (672) - (244) (129) (3,185)
of assets (net)
Information technology 93,869 140,002 233,871 714 65 281 109 75,479 94,677 1 118,120 146,262 669,579
Depreciation (refer note 119,906 179,349 299,255 2,875 802 1,664 648 15,529 101,428 7 37,012 19,139 478,359
2.14 of Schedule 16)
Service tax 62,783 93,908 156,691 - - - - 1,073 22,148 - 117,617 925 298,454
Total 4,726,493 6,989,907 11,716,400 98,108 67,083 247,380 47,848 728,835 4,544,156 16,871 1,035,022 1,966,979 20,468,682
(Refer note 2.12 and 41 of Schedule 16)
112
04-37 40-88 90-161
Schedule - 5 Share Capital

Schedules forming part of the Financial Statements
Rupees (‘000)
As at As at
Authorised capital
125,000,000 (previous year :125,000,000) Equity shares of Rs 10 each 1,250,000 1,250,000
Issued capital
110,227,250 (previous year :110,227,250) Equity Shares of Rs 10 each fully paid up 1,102,273 1,102,273
Subscribed capital
Called-up capital (Refer schedule 5A)
Less : Calls unpaid - -
Add : Equity shares forfeited (Amount originally paidup) - -
Less : Par Value of Equity Shares bought back - -
Less : Preliminary Expenses to the extent not written off - -
Expenses including commission or brokerage on underwriting or subscription of shares
Total 1,102,273 1,102,273
SCHEDULE - 5A Share Capital / Pattern of Shareholding

(As certified by the Management)
As at 31 March 2021 As at 31 March 2020
Shareholder Number of Shares % of Holding Number of Shares % of Holding
Promoters
Indian
Bajaj Finserv Limited 81,568,165 74.00% 81,568,165 74.00%
Foreign
Allianz SE 28,659,085 26.00% 28,659,085 26.00%
Others - - - -
Total 110,227,250 100.00% 110,227,250 100.00%
113
SCHEDULE - 6 Reserves and Surplus

Rupees (‘000)
Particulars As at 31 March 2021 As at 31 March 2020
Capital reserve - -
Capital redemption reserve - -
Share premium 1,666,197 1,666,197
General reserves - -
Less: Debit balance in Profit and Loss Account - -
Less: Amount utilised for Buy-back
Catastrophe reserve - -
Other reserves - -
Balance in Profit and Loss Account 68,560,886 56,748,070
Total 70,227,083 58,414,267
SCHEDULE - 7 Borrowings
Rupees (‘000)
Debentures/Bonds - -
Banks - -
Financial institutions - -
Others - -
Total - -
114
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Schedule - 8 Investments - Shareholders

Rupees (‘000)
Long term investments

1 Government securities and
Government guaranteed bonds including Treasury bills 32,024,031 16,457,404
2 Other approved securities 81,394 80,606
3 Approved Investments
(a) Shares
(aa) Equity Shares (Note no. 5) 3,421,358 4,474,945
- Fair Value Change Accretion/(Diminution) 1,129,208 (891,517)
(bb) Preference Shares - -
(b) Mutual funds - -
- Fair Value Change Accretion/(Diminution) - -
(c) Derivative instruments - -
(d) Debenture/Bonds 1,001,027 225,080
(e) Other securities (to be specified) - -
(i) AT1 Bonds 101,280 356,680
- Fair Value Change Accretion/(Diminution) 925 (13,604)
(f) Subsidiaries - -
Less : Accumulated depreciation - -
4 Investments in Infrastructure and Housing Sector 10,807,954 7,787,683
5 Other investments
(a) Shares
(aa) Equity 357,794 127,500
- Fair Value Change Accretion/(Diminution) 36,706 -
(bb) Preference - -
(b) Debenture/Bonds 249,898 374,800
(c) Other securities - Loan - -
Sub-Total (A) 49,211,574 28,979,577
Short term investments
Government guaranteed bonds including Treasury bills 3,164,321 -
2 Other approved securities - -
3 Approved Investments
(a) Shares
(aa) Equity Shares - -
(bb) Preference shares - -
(d) Debenture/Bonds 1,915,598 497,424
(e) Other securities - -
5 Other Investments
(a) Shares - -
(b) Mutual Funds - -
(c) Debenture/Bonds 125,000 18,750
Sub-Total (B) 8,646,976 3,152,189
Total (A+B) 57,858,550 32,131,766
Investments
In India 57,858,550 32,131,766
Outside India - -
Total 57,858,550 32,131,766
* Investments are segregated into Policyholders’ and Shareholders’ fund as per the directions from IRDAI - Refer note no. 2.15 of Schedule 16
NOTES:
1) All the above investments are performing assets
2) Investments maturing within next 12 months are Rupees 8,646,976 thousand (Previous year Rupees 3,152,189 thousand)
3) Investment other than Equities and Derivative instruments
Aggregate value of Investments as at 31 March 2021 Rupees 52,811,328 thousand (Previous year Rupees 28,077,762 thousand)
Market value as at 31 March 2021 Rupees 53,620,335 thousand (Previous year Rupees 28,928,778 thousand)
4) Value of contracts in relation to investments where deliveries are pending Rupees 1,402,885 thousand (Previous year Rupees Nil thousand) and in respect of Sale
of investments where payments are due Rupees Nil thousand (Previous year Rupees 744,770 thousand)
5) Equity includes investments qualifying for Infra and Housing sector Rupees 439,637 thousand (Previous year Rupees 202,775 thousand)
6) Investments in subsidiary/holding Company Rupees Nil thousand (Previous year Rupees Nil thousand)
7) Investments in other related entities Rupees Nil thousand (Previous year Rupees Nil thousand) - refer note 15 of Schedule 16 for related party transactions
8) Investments in Catastrophe reserve Rupees Nil thousand (Previous year Rupees Nil thousand)
9) Debt securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any
10) Refer note 2.3 (ii), (iii), (iv), (v), 2.13 and 2.15 of Schedule 16 for accounting policy related to Investments and income on investments
115
Schedule - 8A Investments - Policyholders

Rupees (‘000)
Long term investments

Government guaranteed bonds including Treasury bills 69,007,290 63,236,798
2 Other approved securities 49,377 49,197
3 Approved investments
(a) Shares
(aa) Equity Shares (Note no. 5) 8,034,510 10,532,958
- Fair Value Change Accretion/(Diminution) 2,627,168 (2,116,627)
(bb) Preference shares 330,068 -
(d) Debenture/Bonds 28,379,978 16,665,696
(e) Other securities (to be specified) - -
(i) AT1 Bonds 1,096,130 3,915,746
- Fair Value Change Accretion/(Diminution) 25,942 (73,726)
Less : Accumulated depreciation - -
5 Other Investments
(a) Shares
(aa) Equity 834,769 297,500
(bb) Preference - 330,252
(b) Debenture/Bonds 499,796 1,367,104
(c) Other securities - Loan - -
Sub-Total (A) 146,950,069 124,116,641
Short term investments
Government guaranteed bonds including Treasury bills 606,741 9,602
2 Other approved securities - -
3 Approved investments
(a) Shares
(bb) Preference shares - -
(b) Mutual funds 990,000 -
(c) Derivative Instruments - -
(d) Debenture/Bonds 3,288,910 8,460,790
(e) Other securities
(i) Tri-party repo (TREPs) 5,084,643 4,635,384
(ii) AT1 Bonds 450,813 -
(ii) Fixed Deposits 490,000 250,000
5 Other Investments
(a) Shares - -
(bb) Preference Shares - 402,500
(c) Debenture/Bonds 62,500 43,750
(d) Other securities - Loan - -
Sub-Total (B) 19,965,683 26,797,187
Total (A+B) 166,915,752 150,913,828
Investments
In India 166,915,752 150,913,828
Outside India - -
Total 166,915,752 150,913,828
* Investments are segregated into Policyholders’ and Shareholders’ fund as per the directions from IRDAI - Refer note no. 2.15 of Schedule 16
NOTES:
1) All the above investments are performing assets
2) Investments maturing within next 12 months are Rupees 19,965,683 thousand (Previous year Rupees 26,797,187 thousand)
3) Investment other than Equities and Derivative instruments
Aggregate value of Investments as at 31 March 2021 Rupees 153,751,062 thousand (Previous year Rupees 138,357,976 thousand)
Market value as at 31 March 2021 Rupees 158,333,980 thousand (Previous year Rupees 142,242,775 thousand)
4) Value of contracts in relation to investments where deliveries are pending Rupees Nil thousand (Previous year Rupees 769,327 thousand) and in respect of sale
of investments where payments are due Rupees Nil thousand (Previous year Rupees Nil thousand)
5) Equity includes investments qualifying for Infra and Housing sector Rupees 1,025,817 thousand (Previous year Rupees 473,140 thousand)
6) Investments in subsidiary/holding Company Rupees Nil thousand (Previous year Rupees Nil thousand)
7) Investments in other related entities Rupees 9,501,925 thousand (Previous year Rupees 8,504,018 thousand) - refer note 15 of Schedule 16 for related party transactions
8) Investments in Catastrophe reserve Rupees Nil thousand (Previous year Rupees Nil thousand)
9) Debt securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any
10) Refer note 2.3 (ii), (iii), (iv), (v), 2.13 and 2.15 of Schedule 16 for accounting policy related to Investments and income on investments
116
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Schedule - 9 Loans
Rupees (‘000)
As at As at
1 SECURITY-WISE CLASSIFICATION
Secured - -
a) On Mortgage of property
(aa)
In India - -
(bb)
Outside India - -
b) On Shares, Bonds, Govt.Securities - -
c) Others - -
Unsecured - -
Total - -
2 BORROWER-WISE CLASSIFICATION
a) Central and State Government - -
b) Bank and Financial Institutions - -
c) Subsidiaries - -
d) Industrial Undertakings - -
e) Others - -
Total - -
3 PERFORMANCE-WISE CLASSIFICATION
a) Loans classified as standard
(aa)
In India - -
(bb)
Outside India - -
b) Non-performing loans less provisions
(aa) In India - -
(bb)
Outside India - -
Total
4 MATURITY-WISE CLASSIFICATION
a) Short- Term - -
b) Long- Term - -
Total - -
Total - -
Note:
Short-term loans include those, which are repayable within 12 months from the date of Balance Sheet. Long term loans are the loans other than short-term
loans.
117
SCHEDULE 10 - Fixed Assets

Rupees ('000)
Gross Block Depreciation / Amortisation Net Block
As at 1st Additions Deductions As at 31 As at 1st For the On Sales As at 31 As at 31 As at 31

April 2020 during during March April Year March March March
Particulars the year the year 2021 2020 2021 2021 2020
Goodwill - - - - - - - - - -
Intangibles - 986,713 106,483 19,112 1,074,084 560,950 160,076 19,112 701,914 372,170 425,762
Computer Softwares
Land - Freehold 846,212 41,985 - 888,197 - - - - 888,197 846,212
Leasehold 205,469 6,791 19,875 192,385 159,583 30,956 15,479 175,060 17,325 45,887
Improvements
Freehold 24,102 - 605 23,497 24,102 - 605 23,497 - -

Improvements
Buildings* 2,687,834 - 2,687,834 428,478 43,996 - 472,474 2,215,360 2,259,355
Furniture and 610,670 20,775 49,165 582,280 477,202 49,997 42,110 485,089 97,191 133,466
Fittings
Information 1,073,576 139,155 119,171 1,093,560 717,664 170,533 118,902 769,295 324,265 355,912
Technology
Equipment
Vehicles 84,586 20,567 6,504 98,649 31,619 18,993 4,677 45,935 52,714 52,970
Office Equipment 425,362 9,919 74,304 360,977 349,023 27,282 69,825 306,480 54,497 76,342
Others - - - - - - - - - -
Total 6,944,524 345,675 288,736 7,001,463 2,748,621 501,833 270,710 2,979,744 4,021,719 4,195,906
Capital work-in- 249,339 99,666

progress & advances
Grand Total 6,944,524 345,675 288,736 7,001,463 2,748,621 501,833 270,710 2,979,744 4,271,058 4,295,572
Previous year 5,653,770 1,469,594 178,838 6,944,526 2,417,512 503,954 172,846 2,748,620 4,295,572 3,443,909
(Refer note 2.14 of Schedule 16)

* Include share of undivided portion of Land, along with office premises, at an estimated cost of Rupees 19,177 thousand
( Previous year Rupees 19,177 thousand)
None of the software are internally generated
118
04-37 40-88 90-161
Schedule 11 - Cash and bank balances

Rupees ('000)
As at As at
1. Cash and stamps on hand (Refer note 2.25 of Schedule 16) 3,628 9,646
2. Cheques on hand 432,155 811,784
3. Bank balances
(a) Deposit accounts
(aa) Short term (due within 12 months) 2,257,305 1,820,520
(bb)
Others - -
(b) Current accounts 4,140,853 3,117,727
(c) Others - -
4. Money at call and short notice
(a) With banks - -
(b) With other institutions - -
5. Others - -
Total 6,833,941 5,759,677
Balance with non-scheduled Banks included in (3) above* - 260,059
Cash and bank balances
In India 6,833,941 5,499,618
Outside India* - 260,059
Total 6,833,941 5,759,677
* For the current year, Rupees 106,205 thousand credit balance has been disclosed under “Temporary Overdraft as per the books of accounts only” forming
part of Schedule-13
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Schedule - 12 Advances and other assets

Rupees ('000)
As at As at
Advances
1. Reserve deposits with ceding companies - -
2. Application money for investments - -
3. Prepayments 217,616 103,610
4. Advances to Directors / Officers - -
5. Advance tax paid and taxes deducted at source 420,396 709,150
6. Others
(a) Advance to employees 519 842
(b) Advances recoverable 679,010 615,580
Less: Provision for doubtful advances (934) (1,556)
678,076 614,024
(c) Unutilised Tax Credit carried forward
- Goods and service Tax (GST) 1,901,212 1,909,873
(d) Unsettled investment contract receivable - 744,770
Total (A) 3,217,819 4,082,269
Other assets
1. Income accrued on investments 5,488,632 4,828,895
2. Outstanding premiums 12,349,939 12,709,430
3. Agents' balances 276,079 502,360
Less: Provision for doubtful recoveries (39,752) (44,516)
236,327 457,844
4. Foreign agencies balances - -
5. Due from other entities carrying on insurance business,
including reinsurers (net) 923,542 2,421,341
Less: Provision for doubtful amounts - -
923,542 2,421,341
6. Due from subsidiary / holding companies - -
7. Others
a) Other Deposits 265,742 319,068
b) Investment of Unclaimed amounts of Policyholders' (Refer note 24 of Schedule 16) 96,480 99,454
Total (B) 19,360,662 20,836,032
Total (A + B) 22,578,481 24,918,301
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Schedule - 13 Current liabilities

Rupees (‘000)
As at As at
1. Agents' balances 1,235,898 1,136,182

2. Balances due to other insurance companies including reinsurers (net) 17,529,741 12,132,834
3. Premiums received in advance 11,045,024 11,390,057
4. Unallocated premium 4,600,477 4,532,671
5. Sundry creditors (Refer note 22 of Schedule 16) 4,608,166 3,547,047
6. Claims outstanding ( Net ) 100,402,744 83,580,981
7. Solatium fund (Refer note 2.20 of Schedule 16) 166,933 139,782
8. Due to policyholders/ insured 10,835 12,243
9. Unclaimed amount of Policyholders' (Refer note 24 of Schedule 16) 61,479 71,946
10. Others
(a) Goods and Service tax payable (GST) 790,423 849,478
(b) Statutory dues 300,993 222,421
(c) Unsettled investment contract payable 1,402,885 769,327
11. Temporary Overdraft as per the books of accounts only 106,205 1,347,223
Total 142,261,803 119,732,192
Schedule - 14 Provisions
Rupees (‘000)
As at As at
1. Reserve for unexpired risk 41,659,825 41,848,578

2. Premium deficiency (Refer note 2.9 and note 10 of Schedule 16) - -
3. Provision for income tax (Refer note 2.21 of Schedule 16) 136,678 203,089
4. Provision for Standard Asset (Refer note 35 of Schedule 16) - -
5. Others :
For employee benefits
(a) Gratuity (2,261) -
(b) Compensated absences 113,162 108,611
(c) Long term incentive plan 306,520 343,565
Total 42,213,924 42,503,843
Schedule - 15 Miscellaneous expenditure (To the extent not written off or adjusted)
Rupees (‘000)
As at As at
Discount allowed in issue of shares/debentures - -
Others - -
Total - -
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SCHEDULE – 16
Significant accounting policies and notes forming part of the financial statements for the year
ended 31 March 2021
1. Background
Bajaj Allianz General Insurance Company Limited (‘the Company’) was incorporated on 19 September 2000, as a
Company under the Companies Act, 1956. The Company is registered with Insurance Regulatory and Development
Authority of India (‘IRDAI’) and is in the business of underwriting general insurance policies relating to Fire, Marine
and Miscellaneous segments (including Motor, Health, Crop etc.) and holds a valid certificate of registration.
2. Significant accounting policies

The accounting policies set out below have been applied consistently to the periods presented in these financial
statements. The management evaluates all newly issued or revised accounting pronouncements on an ongoing basis
to ensure due compliance.
2.1 Basis of preparation of Financial Statements

The financial statements are prepared and presented on a going concern basis in accordance with the Generally
Accepted Accounting Principles followed in India under the historical cost convention and accrual basis of accounting
and comply with applicable accounting standards referred to in Companies Act, 2013 under section 133, (as amended
from time to time) and in accordance with the statutory requirements of the Insurance Act, 1938 (amended by
the Insurance laws (Amendment) Act, 2015), the Insurance Regulatory and Development Authority (Preparation of
Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (‘the Regulations’) and orders
and directions issued by the IRDAI in this behalf, the Companies Act, 2013 (‘the Act’) (to the extent applicable) and
current practices prevailing in the insurance industry.
The financial statements are presented in Indian rupees rounded off to the nearest thousand.
2.2 Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of
the Balance Sheet date, revenue and expenses for the year ended and disclosure of contingent liabilities as of the
Balance Sheet date. The estimates and assumptions used in accompanying financial statements are based upon
management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual
results may differ from the estimates and assumptions used in preparing the accompanying financial statements.
Any revision to accounting estimates is recognized prospectively in current and future periods.
2.3 Revenue recognition

i) Premium income
Premium (net of goods and service tax), including reinstatement premium on direct business and reinsurance
accepted, is recognized as income at the commencement of risk over the contract period or the period of risk,
whichever is appropriate, on a gross basis and for instalment cases, it is recognized on instalment due dates.
In case of long term motor insurance policies, premium is recognized on a yearly basis as mandated by IRDAI.
Any subsequent revisions to premium, as and when occur, are recognized in the year over the remaining
period of risk or contract period, as applicable.
Adjustments to premium income arising on cancellation of policies are recognized in the period in which
they are cancelled.
Crop insurance premium under government schemes are recognized in accordance with contractual obligations
where there is reasonable certainty of its ultimate collectability.
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ii) Interest / dividend income

Interest income is recognized on accrual basis and dividend income is recognized when the right to receive the
dividend is established.
iii) Premium / discount on purchase of investments

Premium or discount on acquisition, as the case may be, in respect of fixed income securities, is amortized /
accreted on constant yield to maturity basis over the period of maturity/holding.
iv) Profit / loss on sale of debt securities

Profit or loss on sale/redemption of debt securities is the difference between the net sale consideration and
the amortized cost computed on weighted average basis as on the date of sale.
v) Profit / loss on sale of Equity shares and Mutual fund

Profit or loss on sale/redemption of equity shares and mutual fund units is the difference between the net sale
consideration and the weighted average cost in the books of the Company. Profit or loss on sale/redemption of
such securities is recognized on trade/redemption date and includes effects of accumulated fair value changes,
as applicable and previously recognized.
vi) Commission income from reinsurance ceded

Commission received on reinsurance ceded is recognized as income in the period in which reinsurance
premium is ceded. Profit commission under re-insurance treaties, wherever applicable, is recognized in the year
of final determination of the profits and as intimated by Reinsurer.
2.4 Reinsurance ceded

Reinsurance premium in respect of proportional reinsurance is ceded at the commencement of the risk over the
contract period or the period of risk. Non-proportional reinsurance premium is ceded when incurred and due. Any
subsequent revisions to, refunds or cancellations of premiums are recognized in the year in which they occur.
2.5 Reinsurance accepted

Reinsurance inward acceptances are accounted for on the basis of reinsurance slips accepted from the reinsurers.
2.6 Acquisition costs

Acquisition costs, defined as costs that vary with, and are primarily related to, the acquisition of new and renewal
insurance contracts viz., commission, rewards and incentives, policy issue expenses etc., are expensed in the year
in which they are incurred. In case of long term motor insurance policies, commission is expensed at the applicable
rates on the premium allocated for the year.
2.7 Premium received in advance

Premium received in advance represents premium received in respect of policies issued during the year, where the
risk commences subsequent to the Balance Sheet date.
2.8 Reserve for unexpired risk

Reserve for unexpired risk represents that part of the net premium (i.e., premium, net of reinsurance ceded) which
is attributable to, and set aside for subsequent risks to be borne by the Company under contractual obligations on
contract period basis or risk period basis, whichever is appropriate, subject to a minimum of 100% in case of Marine
Hull business and in case of other lines of business based on net premium written on all unexpired policies at
Balance Sheet date by applying 1/365th method on the unexpired period of respective policies.
2.9 Premium deficiency

Premium deficiency is recognized if the ultimate amount of expected net claim costs, related expenses and
maintenance costs exceeds the related premium carried forward to the subsequent accounting period as the
reserve for unexpired risk. The Company considers maintenance costs as relevant direct costs incurred for ensuring
claim handling operations. As per IRDAI circular IRDA/F&A/CIR/FA/126/07/2013, dated 3 July 2013 (Corrigendum
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to Master Circular IRDA/F&I/CIR/F&A/231/10/2012, dated 5 October 2012), premium deficiency, if any, has been
recognized at Segmental Revenue Account Level. The expected claim costs are calculated and duly certified by the
Appointed Actuary.
2.10 Claims incurred

Claims are recognized as and when reported. Claims incurred comprises claims paid, change in the outstanding
provision of claims and estimated liability for claims incurred but not reported (‘IBNR’) and claims incurred but not
enough reported (‘IBNER’). It also includes survey fees, legal expenses and other costs directly attributable to claims.
Claims paid (net of recoveries including salvage retained by the insured and includes interest paid towards claims)
are charged to the revenue account when approved for payment. Where salvage is retained by the Company, the
recoveries from sale of salvage are recognized at the time of sale.
Provision is made for estimated value of outstanding claims at the Balance Sheet date net of reinsurance, salvage
and other recoveries. Such provision is made on the basis of the ultimate amounts that are likely to be paid against
each claim, as anticipated and estimated by the management in light of past experience and subsequently modified
for changes, as appropriate.
Amounts received/receivable from the reinsurers’ and coinsurers’, under the terms of the reinsurance and
coinsurance arrangements respectively, are recognized together with the recognition of the claim.
2.11 Claims Incurred but not reported and claims incurred but not enough reported
Incurred But Not Reported (IBNR) reserve is a provision for all claims that have occurred prior to the end of the
current accounting period but have not been reported to the Company. The IBNR reserve also includes provision for
claims Incurred But Not Enough Reported (IBNER). The said liability is determined by Appointed Actuary based on
actuarial principles. The actuarial estimate is derived in accordance with relevant IRDAI regulations and guidance
note 21 issued by the Institute of Actuaries of India. The Appointed Actuary has certified that the methodology and
assumptions used to estimate the liability are appropriate and in accordance with guidelines and norms issued by the
Institute of Actuaries of India in concurrence with the IRDAI regulations.
2.12 Operating expenses related to the insurance business

As required by IRDAI (Expenses of Management of Insurers transacting General or Health Insurance Business)
Regulations, 2016, the Company has a Board approved policy for allocation and apportionment of expenses of
management amongst various business segments. The expenses of management are segregated between those
which can be directly attributed to a particular business segment and those which cannot be so attributed. Operating
expenses which are directly attributable to a particular business segment and identifiable as such are allocated
directly to that segment. Operating expenses which are not directly identifiable to any business segment, but which
are attached to specific functions are apportioned based on the most suitable driver of apportionment (including
gross written premium, net written premium, number of policies, etc.) for respective functions. Operating expenses
which are not attached to specific functions are apportioned based on the most suitable driver (including gross
written premium, net written premium, number of policies, etc.) of apportionment at Company level.
2.13 Income from Investments: Segregation between Policyholders’ and Shareholders’ funds
Income earned from investments and gains or loss on sale of investments is allocated to Revenue Account and
Profit and Loss Account on the basis of actual holding of the investments of the Policyholders and Shareholders as
bifurcated according to the IRDAI Circular No. IRDA/F&A/CIR/CPM/056/03/2016 dated 4 April 2016 with effect from
1 October 2016. The income earned from investments, gains or loss on sale of investments and other income are
further allocated to the lines of business in proportion of net premium.
2.14 Fixed asset, depreciation and amortization

Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost (including incidental expenses relating to acquisition and installation)
less accumulated depreciation. Assets costing up to Rupees Twenty thousand are depreciated fully in the year
of acquisition.
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Subsequent expenditure incurred on tangible assets is expensed out except where such expenditure results in an
increase in future benefits from the existing assets beyond its previously assessed standard of performance.
In respect of liabilities incurred in acquisition of fixed assets in foreign exchange, the net gain or loss arising on
conversion/settlement is charged to the Revenue Account.
Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the Revenue Account when the asset
is de-recognized.
Depreciation on assets is provided based on Management’s assessment of useful life which reflect the Useful life
specified in Schedule II of the Companies Act, 2013, as follows:
Useful Life (in years) as per Useful Life (in years) as per Schedule
Nature of assets Management’s assessment II of the Companies Act, 2013
Information technology equipment
-End user devices, such as, desktops, laptops, 3 3

etc.
-Servers and networks 6 6
Vehicles * 8 8
Office equipment 5 5
Furniture & fixtures 10 10
Buildings 60 60
Air conditioner (part of office equipment) 5 5
Electrical fittings (part of furniture & fittings)** 10 10
* Useful life of vehicle allotted to the employees is considered 4 years as per management estimates.
**Lease hold improvements and electrical fittings installed at leased premises are depreciated over the primary period of lease which is generally 3
years.

Intangible fixed assets and amortization
Intangible fixed assets representing software are recorded at its acquisition price and are amortized over their
estimated useful life on a straight-line basis, commencing from the date the assets are available for use. Significant
expenditure on improvements to software are capitalized when it is probable that such expenditure will enable the
asset to generate future economic benefits in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset reliably. Subsequent expenditures are amortized over the
remaining useful life of original software. The management has estimated the useful life for such software as three
years except in case of the newly implemented Policy Administration System where the useful life is estimated as
ten years (as against the maximum useful life of ten years prescribed under AS 26 for intangible assets).
The useful life of the asset is reviewed by the management at each Balance Sheet date.
The Company provides pro rata depreciation from/to the month in which the asset is acquired or put to use/disposed
off as appropriate.
Gains or losses arising from de-recognition of intangible assets are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the Revenue Account when the asset
is de-recognized.
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Capital work in progress and advances

Capital work in progress includes assets not ready for the intended use and are carried at cost, comprising direct cost
and related incidental expenses and advances paid for purchase of fixed assets.
Impairment of assets
i) The carrying amounts of all assets are reviewed by the Company at each Balance Sheet date. If there is any
indication of impairment based on internal/external factors, an impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the assets
net selling price and value in use. Value in use is the present value of the estimated future cash flows expected
to arise from the continuing use of the assets and from its disposal at the end of its useful life. In assessing
value in use the estimated future cash flows are discounted to their present value at a rate that reflects
current market assessments of the time value of money and the risks specific to the asset, as determined by
the management.
ii) After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining
useful life, if any.
2.15 Investments
Investments are made and accounted for in accordance with the Insurance Act, 1938, as amended from time to
time including the amendment brought by the Insurance Laws (Amendment) Act, 2015, the Insurance Regulatory
and Development Authority of India (Investments) Regulations, 2016 as amended from time to time, Insurance
Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance
Companies) Regulations, 2002 and various other circulars/notifications issued by the IRDAI in this context
from time to time.
Investments are recorded on trade date at cost, which includes brokerage, transfer charges, transaction taxes as
applicable, etc. and excludes pre-acquisition interest, if any.
Classification:
Investments maturing within twelve months from Balance Sheet date and investments made with the specific
intention to dispose off within twelve months from Balance Sheet date are classified as short-term investments.
Investments other than short term investments are classified as long-term investments.
The investments funds are segregated into Policyholders’ and Shareholders’ fund on security level basis in
compliance with circular no IRDA/F&A/CIR/CPM/056/03/2016 dated – 4 April 2016. Subsequently, IRDAI issued circular
IRDA/F&A/CIR/CPM/010/01/2017 dated – 12 January 2017 to “bifurcate the Policyholders’ and Shareholders’ funds
at the end of each quarter at the “fund level” on “notional basis”. The Company continues to follow the practice of
segregating investments into Policyholders’ and Shareholders funds at security level on quarterly basis in compliance
with circular no IRDA/F&A/CIR/CPM/056/03/2016. The said practice has been communicated to IRDAI.
Debt Securities and Non-convertible Preference Shares

All debt securities (except for Additional Tier 1 (Basel III Compliant) Perpetual Bonds (“AT1 Bonds”)) including
government securities and non-convertible preference shares are considered as ‘held to maturity’ and accordingly
stated at historical cost adjusted for amortization of premium or accretion of discount on constant yield to maturity
basis in the Revenue account and Profit and Loss account over the period of maturity/holding.
AT1 Bonds considered to be a part of Equity, are valued at applicable Market Yield Rates published by any rating
agency registered with Securities Exchange Board of India (SEBI).
Money market instruments (including treasury bills, certificate of deposits, commercial papers, collateralized
borrowing & lending obligation – CBLO and Tri-Party Repo - TREPs) are valued at historical cost and adjusted for
amortization of premium or accretion of discount, as may be the case, over the period of maturity/holding on a
straight-line basis.
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Equity Shares
Listed and actively traded securities are stated at the last quoted closing price on the National Stock Exchange of
India Limited (NSE). In case the equity shares are not listed on the NSE, then they are valued on the last quoted
closing price on BSE Limited. Unrealized gains or losses are credited / debited to the fair value change account.
Unlisted equity shares are stated at historical cost.
Mutual Fund Units

Mutual fund units are stated at their Net Asset Value (‘NAV’) at the Balance Sheet date. Unrealized gains or losses are
credited / debited to the fair value change account.
Loans – Investment
Loans given are stated at historical cost.
Fair Value Change Account

Fair value change account represents unrealized gains or losses in respect of investments in equity securities and
mutual fund units and AT1 Bonds outstanding at the close of the year. The balance in the account is considered as a
component of Shareholders’ funds in the Balance Sheet but not available for distribution as dividend.
Impairment of investment
The Company assesses at each Balance Sheet date whether there is any evidence of impairment of any investments.
In case of impairment, the carrying value of such investment is reduced to its fair value and the impairment loss
is recognized in the Profit and Loss Account after adjusting it with previously recognized revaluation reserve/fair
value change account. However, at the Balance Sheet date if there is any indication that a previously recognized
impairment loss no longer exists, then such loss is reversed and the investment is restated to that extent.
2.16 Employee benefits

i) Short term employee benefits
Employee benefits payable wholly within twelve months of rendering the service are classified as short term
employee benefits and are recognized in the period in which the employee renders the related service. These
benefits include salaries, bonus, ex-gratia and compensated absences. All short term employee benefits are
accounted on undiscounted basis.
ii) Long Term post-employment benefits - defined benefit plan

The gratuity benefit payable to the employees of the Company is as per the provisions of the Payment of
Gratuity Act, 1972 or the Company’s gratuity plan, whichever is higher. The Company accounts for liability for
future gratuity benefits based on independent actuarial valuation under revised Accounting Standard 15 (AS 15)
on ‘Employee Benefits’. Contributions towards gratuity liability of the Company are made to the Bajaj Allianz
General Insurance Company Limited Employees Group Gratuity cum Life Assurance Scheme Trust, which is
administered by the Company. The gratuity liability of the Company is actuarially determined at the Balance
Sheet date using the ‘projected unit credit method’.
The Company contributes towards net liabilities to the Bajaj Allianz General Insurance Company Limited,
Employees Group Gratuity cum Life Assurance Scheme. The Company recognizes the net obligation of the
Scheme in Balance Sheet as an asset or liability, respectively in accordance with Accounting Standard (AS 15)
(revised 2005), ‘Employee benefits’. The discount rate used for estimation of liability is based on Government
securities yield. Gain or loss arising from change in actuarial assumptions/experience adjustments is recognized
in the Revenue Account for the period in which they emerge. Expected long term rate of return on assets has
been determined based on historical experience and available market information.
iii) Long Term post-employment benefits - defined contribution plans

Superannuation: The Company has established a defined contribution scheme for superannuation to provide
retirement benefits to its employees. This superannuation scheme (Bajaj Auto Employee Superannuation
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Scheme) has been established along with the Company’s promoter group. Contributions to this scheme are
made by the Company on an annual basis and charged to the Revenue Account, as applicable. The expenses
are booked on an undiscounted basis. The Company has no further obligation beyond the monthly contribution.
Provident fund: Each eligible employee and the Company make contribution at a percentage of the basic
salary specified under the Employee Provident Funds and Miscellaneous Provisions Act, 1952. The Company
recognizes contributions payable to the Provident fund scheme as an expenditure when the employees render
the related service. The Company has no further obligations under the plan beyond its periodic contributions.
National Pension Scheme contributions: For eligible employees, the Company makes contributions to
National Pension Scheme. The contributions are charged to the Revenue Account, as relevant, in the year the
contributions are made.
Other contributions: The Company makes contributions to Employee Labour Welfare Fund, Employee’s State
Insurance Corporation and Employee Deposit Linked Insurance Schemes. The contributions are charged to the
Profit and Loss and Revenue Account, as relevant, in the year the contributions are made.
iv) Compensated absences

The employee can carry forward a portion of the unutilized accrued compensated absences and utilize it in
future service periods or receive cash compensation on termination of employment. The Company records
an obligation for such compensated absences in the period in which the employee renders the services that
increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the
Projected Unit Credit Method.
v) Long term incentive plan

The Company has a Long Term Incentive Plan (‘LTIP’) for selected management personnel. The plan is a
discretionary deferred compensation plan. It is a rolling plan with annual accruals and a defined payment
schedule. Provision for LTIP liability is accrued and provided for on the basis of actuarial valuation made at the
Balance Sheet date.
vi) Employee Stock Option plan (ESOP)

Stock options are granted to eligible employees under Employee Stock Option Scheme 2018 (“ESOP Scheme”)
as formulated by Bajaj Finserv Limited (“Holding Company”). The scheme is administered through Bajaj Finserv
Employee Stock Option Trust (“The Trust”). The mode of settlement of the scheme is through equity shares of
the holding Company. The options so granted are accounted for based on intrinsic value basis in accordance
with the ‘Guidance Note on Accounting for Employee Share based Payments’, issued by the Institute of
Chartered Accountants of India (“ICAI”). Intrinsic value of option is the difference between market price of the
underlying stock and the exercise price on the date of grant, which is amortized over the vesting period with a
charge to the Revenue Account or Profit & Loss Account. Further, any cost of such options, which is reimbursed
to the holding Company, is amortized over the vesting period with a charge to the Revenue Account or Profit
& Loss Account.
2.17 Foreign currency transactions

In accordance with the requirements of Accounting Standard (AS) 11, “The Effects of Changes in Foreign Exchange
Rates”, foreign currency transactions are initially recognized in Indian Rupees, by applying the exchange rate
between the Indian Rupee and the foreign currency at the date of the transaction.
Subsequent conversion on reporting date of foreign currency monetary items are translated using the exchange rate
prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in
a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which
are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the
exchange rate at the date when such value was determined.
Exchange differences are recognized as income or as expenses in the period in which they arise.
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2.18 Operating lease

Leases, where the lessor effectively retains substantially all the risks and rewards of ownership of the leased item,
are classified as operating lease. The total lease rentals (including scheduled rental increases) in respect of an asset
taken on operating lease are charged to the Revenue Account on a straight line basis over the lease term. Initial
direct costs incurred specifically for an operating lease are charged to the Revenue Account.
2.19 Contributions to Terrorism and Third Party Insurance Pools

i) Terrorism pool
In accordance with the requirements of IRDAI, the Company, together with other insurance companies,
participated in the Terrorism Pool. This pool is managed by the General Insurance Corporation of India
(‘GIC’). Amounts collected as terrorism premium in accordance with the requirements of the Tariff Advisory
Committee (‘TAC’) are ceded at 100% of the terrorism premium collected to the Terrorism Pool, subject to
conditions and an overall limit of Rupees 20,000,000 thousand (Previous year Rupees 20,000,000 thousand) per
location/compound.
In accordance with the terms of the agreement, GIC retro cedes, to the Company, terrorism premium to the
extent of the share agreed to be borne by the Company in the risk, which is recorded as reinsurance accepted.
Such reinsurance accepted is recorded based on quarterly confirmation received from GIC. Accordingly,
reinsurance accepted on account of the Terrorism Pool is recorded in accordance with the latest statement
received from GIC which is generally one quarter in lag.
The entire amount of reinsurance accepted for the current year on this account, net of claims and expenses, up
to the above date, has been carried forward to the subsequent accounting period as ‘Unexpired Risk Reserve’
for subsequent risks, if any, to be borne by the Company.
ii) Motor Third Party Obligation (MTP)

IRDAI issued a circular towards “Obligation of insurer in respect of Motor Third Party Insurance Business,
Regulations, 2015” applicable with effect from 1 April 2015. Every insurer, for the purpose of section 32D
of the Insurance Act, 1938, during a financial year, shall underwrite such minimum percentage of the 90%
of the overall motor third party insurance business premium of the industry for the immediately preceding
financial year.
2.20 Contributions to Solatium funds

The Company provides for contribution to Solatium fund at 0.10% of total Third Party Premium of direct business as
per requirements of IRDAI.
2.21 Income Tax

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the provisions of the Income Tax Act, 1961. Deferred income tax
reflects the impact of current year timing differences between taxable income and accounting income and reversal
of timing differences for earlier years. Timing differences are the differences between taxable income and accounting
income for a period that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance
Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable
certainty that sufficient future taxable income will be available against which such deferred tax assets can be
realized. If the Company has unabsorbed depreciation or carry forward business losses, deferred tax assets are
recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be
realized against sufficient future taxable profits.
At each Balance Sheet date, the Company re-assesses unrecognized deferred tax assets. It recognizes previously
unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available against which such deferred tax assets
can be realized.
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Deferred tax asset (net of the deferred tax liability) is disclosed on the face of the Balance Sheet. The breakup of
deferred tax assets and deferred tax liabilities into major components of the respective balances has been disclosed
in Schedule 16, note 18.
2.22 Goods and Services Tax (GST)

Goods and Services Tax (GST) collected is considered as a liability against which GST paid for eligible input services,
to the extent claimable, is adjusted and the net liability is remitted to the appropriate authority as stipulated.
Unutilized GST credits, if any, are carried forward under “Others – Unutilized GST Carried Forward” and disclosed
in Schedule 12 for adjustments in subsequent periods and GST liability to be remitted to the appropriate authority
is disclosed under “Others- GST Payable” in Schedule 13. GST paid for eligible input services not recoverable
by way of credits is recognized in the Revenue Account as expenses under a separate line item in Schedule 4
and Schedule 4(A).
2.23 Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of a past event and it is probable
that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be
made. Provisions are not discounted to their present value and are determined based on best estimate required
to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to
reflect the current best estimates.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are neither recognized nor disclosed in the financial statements.
2.24 Earnings per Share

The basic earnings per share is computed by dividing the net profit in the Profit and Loss Account attributable to the
equity shareholders by weighted average number of equity shares outstanding during the reporting year.
Number of equity shares used in computing diluted earnings per share comprises the weighted average number of
shares considered for deriving basic earnings per share and also weighted average number of equity shares which
would have been issued on the conversion of all dilutive potential shares. In computing diluted earnings per share
only potential equity shares that are dilutive are included.
2.25 Cash and cash equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances and other investments (fixed deposits)
with original maturity of three months or less.
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NOTES TO ACCOUNTS
3. Contingent liabilities
Contingent liabilities not provided for in respect of claims against the Company not acknowledged as debts other than
insurance matters –
(Rupees in ‘000)
Sr.No.
1 Partly paid up investments Nil Nil
2 Underwriting commitments outstanding (in respect of shares and securities) Nil Nil
3 Claims other than those under policies not acknowledged as debts Nil Nil
4 Guarantees given by or on behalf of the Company Nil Nil
5 Statutory demands/liabilities in dispute, not provided for, in respect of
a) Income Tax Nil Nil
b) Service Tax * 154,906 1,759,147
6 Reinsurance obligations to the extent not provided for in accounts Nil Nil
Note:
* The previous year number includes a demand from the tax authorities towards recovery of amount of Cenvat credit availed by the Company.
The matter is in appeal before CESTAT. During the year, CESTAT has assessed the matter in favour of another insurer, basis which the demand
has been assessed as remote by the Company. The current year amount pertains to service tax refund applications rejected by the assessing
officer which are now in appeal before Commissioner (Appeals). On both matters, the Company is in conformity with various legal and judicial
pronouncements / opinions and believes its position is tenable under the respective regulations.
4. Additional Disclosures on Expenses

Additional disclosures on expenses pursuant to the IRDAI Circular 067/IRDA/F&A/CIR/MAR-08 dated March 28, 2008
have been detailed herein below:
(Rupees in ‘000)
Particulars for the year ended 31 March 2021 31 March 2020
Outsourcing expenses * 1,989,866 3,153,373

Business development 1,278,741 1,476,990
Marketing support 6,781,035 7,107,110
*Note : Until previous year the Company was furnishing details including GST however from FY2021 we have started disclosing the same excluding
GST to reconcile values with vendor ledger. Previous year numbers have also accordingly been restated.
5. Capital commitments
Commitments made and outstanding for acquisition of fixed assets amount to Rupees 536,539 thousand
(Previous year Rupees 592,154 thousand). Commitments made and outstanding for loans and investments is NIL
(Previous year NIL).
131
6. Actuarial methodology
The Appointed Actuary has certified that actuarial estimates for IBNR (including IBNER) reserves have been
determined using actuarial principles. In the determination, the Actuarial Practice Standards issued by the Institute of
Actuaries of India and any directions issued by the Authority in this behalf have been followed. Where credible data
is available, the Actuary has chosen to adopt the Chain Ladder Method. In other cases, expected ultimate loss ratio
method, frequency-severity method or fixed IBNR method have also been used. The Chain Ladder Method has been
applied to Motor, Fire, Marine Cargo, Engineering, Package, Rural, Extended Warranty, Personal Accident, Workmen’s
Compensation, Health excluding govt Scheme, Travel, Motor CVTP Pool and Miscellaneous lines of business. These
IBNR reserves include Margin for Adverse Deviation and reserves for Unallocated Loss Adjustment Expenses (ULAE) for
the claims up to 31 March 2021.
Net IBNR reserves have been arrived on the basis of actuarial estimates based on the claim data, after allowance for
reinsurance recoveries.
7. Claims
a. Claims settled and outstanding for more than six months – Rupees Nil (Previous year – Rupees Nil).
b. Claims made in respect of contracts exceeding four years – Rupees Nil (Previous year – Rupees Nil)
8. Premium with varying risk pattern

Extent of premium income recognized based on varying risk pattern – Rupees Nil (Previous year – Rupees Nil).
9. Computation of managerial remuneration

(Rupees in ‘000)

Mr. Tapan Singhel
· Salary, allowances and bonus (Including contributions to funds) 131,216 116,266
· Perquisites 1,487 1,570
Expenses towards gratuity, compensated absence and long term incentives are determined actuarially on an overall
Company basis annually and accordingly have not been considered in the above information, except to the extent paid.
The managerial remuneration is in accordance with the approval accorded by a resolution of the Board of Directors and
awaiting approval of IRDAI. Managerial remuneration in excess of Rupees 15,000 thousand has been charged to Profit
and Loss Account.
In addition, details of Stock options granted and exercised are as follows:

No. of Options

Granted during the year 23,225 -
Exercised during the year - -
10. Premium deficiency

The Company has provided Premium Deficiency Rupees Nil thousand (Previous year – Nil thousand) as per IRDAI
regulatory guideline - refer Schedule 16 note 2.9.
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04-37 40-88 90-161
11. Rural and Social obligation

Percentage of business sector – wise (Based on gross direct premium):
(Rupees‘000, Count – numbers)
GDPI No. of No of Lives % of GDPI GDPI No. of No of Lives % of GDPI

Business sector Policies Policies
Rural 25,780,186 3,818,964 - 20.51 10,122,333 1,880,163 - 7.92
Social 3,708 417 4,133,014 0.00 4,050 447 4,696,948 0.00
Urban 99,911,396 21,154,058 - 79.49 117,671,329 24,994,588 - 92.08
Total 125,695,290 24,973,439 25,800,465 100 127,797,712 26,875,198 18,758,407 100
As against the rural contribution of 7% of GDPI mandated by IRDAI, the Company’s rural contribution is 20.51%. As against the requirement of 5% of
the total lives written in previous year, the Company has written 22.03% of total lives written in previous year under the social sector.
12. Extent of risk written and reinsured based on Gross written premium (excluding excess of
loss and catastrophe reinsurance).
Particulars % age of business written % age of business written
Risk Retained 60% 64%
Risk Insured 40% 36%
Total 100% 100%
13. Contribution to Environment Relief Fund

The Company has collected an amount of Rupees 5,452 thousand (Previous year - Rupees 5,400 thousand) towards
Environment Relief Fund from public liability policies. The Company has paid all the funds collected towards
Environment Relief Fund up to 28 February 2021 to United India Insurance Company, the implementing agency for
the fund. The balance payable amounting to Rupees 398 thousand (Previous year Rupees 286 thousand) has been
disclosed under the head current liabilities in schedule 13.
14. Segmental reporting

The Company’s primary reportable segments are business segments, which have been identified in accordance with
the Regulations. The operating expenses, income from investments and other income attributable to the business
segments are allocated as mentioned in Schedule 16 note numbers 2.12, 2.13 and 21 respectively. Segment revenue
and results have been disclosed in the financial statements. Due to inherent complexities, segment assets and
liabilities have been identified to the extent possible in the statement annexed (refer Annexure 1) hereto. There are no
reportable geographical segments since the Company provides services only to customers in the Indian market or to
Indian interests overseas and does not distinguish any reportable regions within India.
15. Related party disclosures

Related party disclosures have been set out in a separate statement annexed (refer Annexure 2) to this schedule as
per Accounting Standard 18 ‘Related Party Disclosures’ issued under Companies (Accounting Standards) Rules, 2006.
133
16. Operating lease payments

The Company’s significant leasing arrangements include agreements for official and residential premises. These lease
agreements are generally mutually renewal / cancellable by the lessor / lessee. The future minimum lease payments
relating to non-cancellable leases are disclosed below:
(Rupees in '000)
Payable not later than one year 25,812 43,093
Payable later than one year but not later than five years 19,947 32,065
Payable later than five years - -
• Amount charged to Revenue Accounts in respect of all lease arrangements aggregates Rupees 341,943 thousand
(Previous year Rupees 365,575 thousand).
• There are no transactions in the nature of sub leases.
• The period of agreement is generally for three years and renewable thereafter at the option of the lessee.
17. Earnings per Share (‘EPS’)

(Rupees‘000, Count – numbers)
Particulars FY 2021 FY 2020
Profit after Tax
Basic earnings before extra-ordinary items [A] Rupees 13,300,883 9,987,770
Basic earnings after extra-ordinary items [B] Rupees 13,300,883 9,987,770
Weighted average number of equity shares (par value of Rupees 10 each) [C] 110,227,250 110,227,250
Basic and diluted earnings per share [A/C] Rupees Rs. 120.67 Rs. 90.61
Basic and diluted earnings per share after extraordinary items [B/C] Rupees Rs. 120.67 Rs. 90.61
As there were no dilutive equity shares or potential equity shares issued, no reconciliation between the denominator used for computation of basic
and diluted earnings per share is necessary.
18. Taxation
The Taxation Laws (Amendment) Act, 2019 had amended the Income Tax Act, 1961, and the Finance (No. 2) Act, 2019
by inserting section 115BAA which provides domestic companies with an option to opt for lower tax rates, provided
they do not claim certain deductions. The Company had elected to exercise the option and has accordingly recognized
Provision for Income Tax since the year ended 31 March 2020. Owing the said change, the Company had re-measured
the opening balance of Deferred Tax Assets as at 1 April 2019 at the lower tax rate prescribed in the said section
leading to a reversal of Rupees 431,687 thousand for the year ended 31 March 2020.
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04-37 40-88 90-161
The deferred tax assets and liabilities, arising due to timing differences have been recognized in the financial
statements as under:
(Rupees in ‘000)
Deferred tax asset 31 March 2021 31 March 2020
Reserve for unexpired risks 937,302 220,293
Employee Benefits 28,481 27,335
Long Term Incentive Plan 77,145 86,469
Provision for doubtful debts 10,240 11,595
Solatium fund 42,014 35,180
Provision for diminution in value of Investments 380,062 465,737
Total 1,475,244 846,609
Deferred tax liability
Depreciation as per section 32 of Income Tax Act, 1961 (212,684) (208,652)
Net deferred tax asset 1,262,560 637,957
Deferred Tax (income) / expense recognized in the Profit and loss account (624,603) 905,094
During the financial year ended 31 March 2021, the current tax includes reversal of income tax provision of Rupees
14,062 thousand (Previous year – Rupees Nil thousand) for earlier years being difference between tax liability as per
return of income and tax liability provided in books of account.
The Current tax for the financial year ended 31 March 2021 includes provision of income tax of Rupees Nil thousand
(Previous year – Rupees 11,578 thousand) for earlier years.
19. Employee benefit plans

i) Defined contribution plan
The Company has recognized following amounts in the Revenue and the Profit and Loss account, as relevant, for
the year in respect of contribution towards defined contribution plans:
(Rupees in ‘000)
Provident fund* 149,390 161,129
Superannuation scheme 5,098 5,052
Employees state insurance corporation 1,534 5,163
Labour welfare fund 325 390
Contribution to National Pension Scheme 22,019 21,305
Total 178,366 193,039
*Note: In February 2019, the Supreme Court had delivered ruling on the composition of basic wages for the purposes of deduction and
contribution to the Employees Provident and Pension funds. The Company has implemented the above ruling w.e.f. 1 April 2019. The Company,
in the interest of its employees, further awaits clarity on the complexities revolving around the retrospective application of the said order, the
ambiguity reflected by the divergent views of legal experts and the response/direction from the authorities, including on representations made
by an industry association in this regard.
135
ii) Defined benefit plan (gratuity)

The Gratuity plan of the Company provides for a lump–sum payment to vested employees at retirement/
termination/death or on resignation from employment. The payment is based on employee’s last drawn salary
and number of years of employment with the Company. The actuarial valuation of gratuity liability of the Company
is determined at each Balance Sheet date using projected unit cost method. The Company makes the contribution
to an approved gratuity fund which is maintained and managed by Bajaj Allianz Life Insurance Company Limited.
The following table shows the amounts recognized in the Balance Sheet.
I. Revenue Account
Net employee benefit expense (recognized in Employee cost)
(Rupees in ‘000)
Current service cost 58,191 56,932
Interest cost on defined benefit obligation 26,679 30,203
Expected return on plan assets (25,477) (26,715)
Net actuarial loss recognized in the year 66,219 (12,483)
Net benefit expense 125,612 47,937
Actual return on plan assets 24,738 37,278
II. Balance Sheet

(i) Details of provision for gratuity
(Rupees in ‘000)
Defined benefit obligation 615,422 498,581
Fair value of plan assets (617,682) (505,472)
Net liability/(asset) recognized in the Balance Sheet (2,260) (6,891)
(ii) Changes in the present value of the defined benefit obligation are as follows:
(Rupees in ‘000)
Opening defined benefit obligation 498,581 437,009
Interest cost 26,679 30,203
Current service cost 58,191 56,932
Benefits paid (33,509) (23,643)
Actuarial losses/(gains) on obligation 65,480 (1,920)
Closing defined benefit obligation 615,422 498,581
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04-37 40-88 90-161
(iii) Changes in the fair value of plan assets are as follows:

(Rupees in ‘000)
Opening fair value of plan assets 505,472 445,557

Expected return 25,477 26,715
Contributions by employer 120,982 46,280
Benefits paid (33,509) (23,644)
Actuarial (losses)/gains (740) 10,564
Closing fair value of plan assets 617,682 505,472
The Company expects to contribute Rupees 150,000 thousand to gratuity in FY 2022
(iv) The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
31 March 2021 31 March 2020
Particulars % %
Investments with insurer 100 100

Asset allocation:
Government securities 85 67
Debentures and bonds 6 19
Fixed deposits 1 2
Money market instruments 4 2
Others 4 10
(v) The principal assumptions used in determining the benefit obligations for the Company’s gratuity plans
are shown below:
31 March 2021 31 March 2020
Particulars % %
Discount rate 5.10 5.45
Expected rate of return on assets 5.00 5.50
Increase in compensation cost 8.50 7
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.
137
(vi) Experience Adjustments for the current and previous four years are as follows:
(Rupees in ‘000)
Particulars 31 March 2021 31 March 2020 31 March 2019 31 March 2018 31 March 2017
Defined benefit obligation 615,422 498,581 437,009 366,834 304,976
Plan assets 617,682 505,472 445,557 371,599 304,976
Surplus / (deficit) 2,260 6,891 8,548 4,765 -
Experience adjustments on plan 19,264 34,067 37,820 35,834 57,349

liabilities
Experience adjustments on plan (740) 10,562 (1,320) (4,835) 7,704

assets
iii) Other long-term benefits

Compensated absence
Liability for compensated absence for employees is determined based on actuarial valuation which has been
carried out using the projected accrued benefit method which is same as the projected unit credit method in
respect of past service. The assumptions used for valuation are:
Expenses Recognized in the Profit and Loss Account and Revenue Account During the year 117,793 105,159
Actuarial assumptions used
Discount rate 5.10% 5.45%
Salary escalation rate* 8.50% 7.00%
Mortality Table Indian Assured Indian Assured

Lives Mortality Lives Mortality
(2012-14) (2012-14)
Ultimate Ultimate
* Future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors such as
supply and demand in the employment market.
Long–term incentive plans

Liability for the scheme is determined based on actuarial valuation which has been carried out using the projected
accrued benefit method which is same as the projected unit credit method in respect of past service. The
assumptions used for valuation are:
Expense recognized in income statement during the year 90,225 136,198
Actuarial assumptions used
Discount rate 5.10% 5.45%
Attrition rate 5.00% 5.00%
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04-37 40-88 90-161
Employee Stock Options Plans

The Company has granted Employee Stock Option 2018-Tranche I (“ESOP 2018”), Employee Stock Option 2018 –
Tranche III (“ESOP 2019”) and Employee Stock Option 2018 – Tranche IV (“ESOP 2020”) to its eligible employees.
These grants have a graded vesting over three years and the vested options have to be exercised by employees
within five years from the date of vesting, subject to the norms prescribed by the Nomination and Remuneration
Committee. The mode of settlement of the scheme is through equity shares of the Bajaj Finserv Limited
(holding Company).
ESOP 2018 and 2019

The intrinsic value of the options issued under ESOP 2018 and 2019 is ‘Nil’ and accordingly, no expenses are
recognized in the books of account.
ESOP 2020
While the intrinsic value of the options granted under ESOP 2020 is also ‘Nil’, the Company has reimbursed cost
of such options to the holding Company. This cost is amortised over the vesting period resulting in amortisation
charge to Revenue Account / Profit & Loss Account of Rupees 136,584 thousand (Previous year: Nil).
Had the Company followed the fair value method for valuing its options, the charge to the Revenue Account
for the year would have been higher by Rupees 33,141 thousand (Previous year: Rupees 61,028 thousand) and
the profit after tax would have been lower by Rupees 24,889 thousand (Previous year: Rs 44,351 thousand).
Consequently, Company’s basic and diluted earnings per share would have been Rupees 120.44 (Previous
year: Rupees 90.21).
Details of each option is as follows:

ESOP 2020 ESOP 2019 ESOP 2018
Particulars No of options No of options No of options
Date of Grant 22 May 2020 16 May 2019 19 July 2018
No. of Options Granted 176,675 45,200 16,625
Exercise Price Rs. 4,702.05 Rs. 7,454.70 Rs. 6,365.70
Graded Vesting Period:
1st Year 34% 34% 34%
2nd Year 33% 33% 33%
3rd Year 33% 33% 33%
Maximum term of options granted/ Contractual Life 8 Years 8 Years 8 Years
A summary of status of ESOP schemes in terms of options forfeited, options exercised, options outstanding and
options exercisable is as given below
For the year ended 31 March 2021 For the year ended31 March 2020
Particulars ESOP 2020 ESOP 2019 ESOP 2018 ESOP 2020 ESOP 2019 ESOP 2018
Outstanding at the beginning of the year - 44,375 17,313 - - 15,900

Granted during the year* 176,675 - 1,175 - 45,200 1,725
Forfeited/lapsed during the year 3,425 775 325 - 825 182
Exercised during the year - 142 302 - - 130
Outstanding at the end of the year 173,250 43,458 17,861 - 44,375 17,313
Exercisable at the end of the year - 14,703 5,740 - - 5,879
Remaining contractual life 7.14 Years 6.12 Years 5.29 Years - 7.12 Years 6.29 Years
* Including ESOP units of employee transferred within Group Company
139
The weighted average share price during the year was Rs. 6,743.64 (Previous year: Rs. 7,691.04).
The fair value of options has been calculated using the Black-Scholes model. The fair value on the date of grant
and the key assumptions used in Black-Scholes model for calculating fair value of each option are as follows:
Particulars ESOP2020 ESOP2019 ESOP2018
Weighted average fair value on the date of grant Rs. 1,470.51 Rs. 2,240.09 Rs. 1,930.46
Risk-free interest rate 6.35% 7.56% 8.07%
Expected life One year after One year after One year after
vesting vesting vesting
Expected Volatility 35.56% 30.40% 29.65%
Expected dividend yield Rs. 2.50 Per Share Rs. 1.75 Per Share Rs.1.75 Per Share
* Based on historical stock prices using annualized standard deviation of daily change in stock price.
iv) Code on Social Security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which subsumes the Provident Fund
and the Gratuity Act and rules there under. The ministry of Labour and Employment has also released draft
rules thereunder on 13 November 2020 and has invited suggestions from stakeholders which are under active
consideration by the Ministry. However, the date on which the Code will come into effect has not been notified as
on 31 March 2021 and the final rules/interpretation have not yet been issued. The Company will assess the impact
once the subject rules are notified and will give appropriate impact in its financial statements.
20. Summary financial statements and Accounting ratios

The summary of the financial statements for the last 5 years and the ratios required to be furnished have been set out
in the statement annexed hereto. (refer Annexure 3 and Annexure 4)
21. Expenses related to Policyholders’ and Shareholders’ investments

Expenses directly identifiable with investment activity amounting to Rupees 43,721 thousand (previous year Rupees
47,796 thousand) are included under “expenses other than those relating to insurance business” in the Profit and Loss
Account. Further, Operating expenses related to insurance business in Schedule 4, includes indirect expenses of Rupees
22,454 thousand (previous year Rupees 20,919 thousand) which could be apportionable towards investments activity
which has been computed on the basis of number of documents, income or staff cost as appropriate.
22. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
According to information available with the management, on the basis of information received from the suppliers
regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) Act, the
Company has amounts due to Micro, Small and Medium Enterprises under the said Act as follows:
(Rupees in ‘000)
Sr.
No. Particulars 31 March 2021 31 March 2020
i) The principal amount remaining unpaid to any supplier as at the end of the year 137,951 38,588
ii) Interest due on the above amount Nil Nil
iii) The amount of interest paid by in terms of section 16 of the Micro, Small and Medium Nil Nil
Enterprises Development Act, 2006
iv) Amounts of the payment made to the supplier beyond the appointed day during the Nil Nil
year.
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04-37 40-88 90-161
(Rupees in ‘000)
Sr.
v) Amount of interest due and payable for the period of delay in making payment (which Nil Nil
have been paid but beyond the appointed day during the year) but without adding the
interest specified under Micro Small and Medium Enterprise Development Act, 2006
vi) Amount of interest accrued and remaining unpaid at the end of the year Nil Nil
vii) The amount of further interest remaining due and payable even in the succeeding Nil Nil
years, until such date when the interest dues as above are actually paid to the small
enterprise
23. Fines and Penalties

Details of Penal actions taken by various Government Authorities as below:
(Rupees in ‘000)
Non-Compliance/ Penalty Penalty Penalty Waived/

Sr. Violation awarded paid Reduced/Stay
No. Authority received
1 Insurance Regulatory & Development FY2021 - - - -

Authority of India FY2020 Penalty for non-compliance 900 900 -
of certain provisions of
Insurance Act 1938 and
Regulations / Guidelines
issued by IRDA
2 Service Tax Authorities FY2021 - - - -
FY2020 - - - -
3 Income Tax Authorities FY2021 - - - -
FY2020 - - - -
4 Any Other Tax Authorities FY2021 - - - -
FY2020 - - - -
5 Enforcement Directorate / FY2021 - - - -
Adjudicating Authority/ Tribunal or FY2020 - - - -
any authority under FEMA
6 Registrar of Companies/ NCLT/ CLB/ FY2021 - - - -
Department of Corporate Affairs FY2020 - - - -
or any Authority under Companies
Act-1956
7 Penalty awarded by any Court/ FY2021 - - - -
Tribunal for any matter including FY2020 - - - -
claim settlement but excluding
compensation
8 Securities and Exchange Board of FY2021 - - - -
India FY2020 - - - -
9 Competition Commission of India FY2021 - - - -
FY2020 - - - -
10 Any other Central / State /Local FY2021 - - - -
Govt./ Statutory Authority (Tariff FY2020 - - - -
Advisory Committee)
141
24. Unclaimed funds

IRDAI has vide circular no. IRDA/F&I/CIR/CMP/174/11/2010 & IRDA/F&A/CIR/Mis/173/07/2017 advised all insurers to
disclose under schedule 13 – Current Liabilities amount due to policyholders/ Insured on accounts of claims settled but
not paid (except under litigation), excess collection of the premium / tax which is refundable and cheques issued but
not encashed by policy holders / Insured.
Statement showing the Age-wise Analysis of the Unclaimed Amount of the Policyholders as at the end of
31st March 2021
(Rupees in ‘000)
Total 0-6 7-12 13-18 19-24 25-30 31-36 Beyond 36

Particulars Amount months months months months months months months
Claims settled but not paid to the FY2021 - - - - - - - -

policy holders/ insured due to any
reasons except under litigation from FY2020 - - - - - - - -
the insured/ policyholders
Sum due to the insured/ policy FY2021 - - - - - - - -

holders on maturity or otherwise FY2020 - - - - - - - -
Any excess collection of the

premium/tax or any other charges FY2021 39,966 3,549 4,026 3,336 4,466 3,455 3,627 17,507
which is refundable to the
policyholders either as terms of
conditions of the policy or as per
law or as may be directed by the FY2020 37,737 5,070 5,357 4,142 4,177 4,502 3,206 11,283
Authority but not refunded so far
Cheques issued but not encashed by FY2021 21,513 - - - - - - 21,513

the policy holder/ insured FY2020 34,209 - - - - - - 34,209
FY2021 61,479 3,549 4,026 3,336 4,466 3,455 3,627 39,020

Total
FY2020 71,946 5,070 5,357 4,142 4,177 4,502 3,206 45,492
As per IRDAI circular no. IRDA/F&A/CIR/Mis/173/07/2017 dated 25 Jul 2017 which required disclosure of the following
information on unclaimed amount of policy holders.
Details of Unclaimed Amount & Investment Income
(Rupees in ‘000)
Particulars FY 2021 FY 2020
Opening Balance 71,946 66,914
Add: Amount transferred to unclaimed fund 15,612 13,623
Add: Cheques issued but not encashed by the policyholder (To be included only when cheques are stale) - -
Add: Investment income on unclaimed fund 2,449 3,502
Less : Amount of claims paid during the year 14,768 10,368
Less : Amount transferred to SCWF (net of claims paid in respect of amounts transferred earlier) 13,759 1,725
Closing balance of unclaimed Amount fund 61,479 71,946
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04-37 40-88 90-161
25.Pending litigations
The Company’s pending litigations comprise of claims against the Company and proceedings pending with various
Tax Authorities including Income Tax, Service Tax and Goods and Services Tax (GST). The Company has reviewed
all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the
contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of
these proceedings to have a significant impact on its financial position. (Refer note no.3 of schedule 16 for details on
contingent liabilities).
The Company had received a show cause cum demand notice towards service tax under reverse charge mechanism on
reinsurance contracts on weather based crop insurance policies (WBCIS) and Modified National Agricultural Insurance
schemes (MNAIS). Based on Company’s assessment and on the basis of independent opinion sought from external tax
consultants, the Company is of the belief that the liability is not expected to materialize. Further, the matter being an
industry wide issue with significant impact on the viability of the WBCIS and MNAIS, the same has been represented
by the General Insurance Council to the Central Board of Indirect Taxes and Customs for clarification.
26. Long term contracts

The Company periodically reviews all its long term contracts to assess for any material foreseeable losses. Based on
such review, the Company has made adequate provisions for these long term contracts in the books of account as
required under any applicable law/accounting standard.
As at 31 March 2021 the Company did not have any outstanding derivative contracts.
27. Contribution to Investor Education and Protection Fund

For the year ended 31 March 2021, there is no amount that needs to be transferred to the Investor Education and
Protection Fund.
28. Corporate Social Responsibility

During the year, as per provisions of section 135 of Companies Act 2013, the Company was required to spend Rupees
258,692 thousand (previous year: Rupees 238,837 Thousand) being 2% of average net profits made during the three
immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy. The Company has
spent Rupees 259,571 thousand (previous year: Rupees 239,340 thousand) towards Corporate Social Responsibility
activities during the year.
The details of amount spent during the year are as follows:
(Rupees in ‘000)
Sr.
i) Construction / acquisition of any asset Nil Nil
ii) On purposes other than (i) above 259,571 239,340
Total 259,571 239,340
143
29. Repo and Reverse Repo Transaction

(Rupees in ‘000)
Minimum Maximum Daily average

outstanding outstanding outstanding Outstanding
during the during the during the as on 31
Particulars year year year March
Securities Sold under repo (At cost)
1. Government Securities FY2021 - - - -
FY2020 - - - -
2. Corporate Debt Securities FY2021 - - - -
FY2020 - - - -
Securities purchased under reverse repo (At cost)
1. Government Securities FY2021 989,539 5,939,933 9,492 -
FY2020 50,107 3,836,382 5,324 -
2. Corporate Debt Securities FY2021 - - - -
FY2020 - - - -
30. Solvency Margin

(Rupees in ‘000)
Solvency Margin 31 March 2021 31 March 2020
Required solvency margin under IRDAI 19,631,609 20,782,410

Regulations (A)
Available solvency margin (B) 67,757,359 52,825,010
Solvency ratio actual (times) (B/A) 3.45 2.54
Solvency ratio prescribed by Regulation 1.5 1.5
31. Dividend
IRDAI through its circular on Prudent management of financial resources of insurers in the context of Covid-19 pandemic
Ref. No: IRDA/F&A/CIR/MISC/099/04/2020 dated 24 April 2020, in view of the emerging market conditions, and to
conserve capital with the insurance companies in the interests of the policyholders and of the economy at large, has
directed insurers to take a conscious call to refrain from dividend pay-outs from profits pertaining to the financial year
ending 31 March 2020, till further instructions. The circular also states that this position shall be reassessed by the
Authority based on financial results of insurers for the quarter ending 30 September 2020.
IRDAI vide its circular no. IRDA / F&A / CIR / MISC / 032 / 02 / 2021 dated 25 February 2021 withdrew applicability of
its earlier circular No: IRDA/F&A/CIR/MISC/099/04/2020 dated 24 April 2020. The Board of Directors declared an interim
dividend of Rs. 13.50 per share, i.e. 135% of face value of Rs. 10 per equity share, totalling Rs. 1,488,068 thousand
(Previous year: Nil).
144
04-37 40-88 90-161
32. Encumbrance of Assets

The assets of the Company are free from all encumbrances except to the extent assets or monies are required to be
deposited as margin contributions for investment trade obligations of the Company as detailed below:
Assets encumbered with Clearing Corporation of India Limited (CCIL)

The following cash deposit have been placed with CCIL towards margin requirement / default fund for settlement of
trades in the securities and Tri-Party Repo segment:
(Rupees in ‘000)
Margin Money Deposits 50,100 50,100
Default Fund 15,400 15,400
Nature of pledge: These deposits can be invoked by CCIL in case of any default by the Company in settlement of
trades in securities and Tri-Party Repo segment.
33. Non-performing investments

The Company has debt exposures in two NBFCs where the financial position and credit ratings indicated the carrying
amount of such exposures to be higher than the recoverable amount and has accordingly classified the said exposure
as Non-performing Assets (NPA) as per the IRDAI investment classification requirement. Accordingly, against the
carrying cost of Rupees 1,229,158 thousand the recoverable amount has been assessed as of Rupees 307,711 thousand
during the year (Previous year impairment: carrying cost Rupees 2,374,566 thousand and recoverable amount assessed
as Rupees 1,112,711 thousand).
There are no assets subject to restructuring (31 March 2020: Nil thousand) initiated by the Company as a result of
stress faced by the investee Companies.
34. Value of investment contracts where settlement or delivery is pending as at year

end is as follows:
(Rupees in ‘000)
Purchases where deliveries are pending 1,402,885 769,327
Sales where receipts are due Nil 744,770
There are no investment contracts where securities have been sold but payments are overdue at the Balance Sheet
date.
35. Provision for Standard assets for debt portfolio

In accordance with the ‘Guidelines on Prudential norms for income recognition, Asset classification, Provisioning and
other related matters in respect of Debt portfolio’ as specified by IRDAI vide the Master Circular dated 11 December
2013, provision for standard assets at 0.40% of the value of the asset has been recognized as follows :
(Rupees in ‘000)
Provision towards Standard Assets Nil Nil
145
36. Foreign exchange gain/loss

The foreign exchange loss (net) debited to Revenue Account for the year ended 31 March 2021 is Rs. 17,909 thousand
(31 March 2020 exchange gain (net) Rs.19,834 thousand).
37. Disclosures on other work given to auditors

Pursuant to Corporate Governance guidelines issued by IRDAI dated May 18, 2016, the additional works (other than
statutory/ internal audit) given to the auditors are detailed below:
(Rupees in ‘000)
Name of Audit firm Services rendered 31 March 2021 31 March 2020
B S R & Co. LLP Other audit fees 2,660 1,500
S. R. Batliboi & Co. LLP Other audit fees 1,250 1,100
38.Statement containing names, descriptions, occupations of and directorships held by the

persons in charge of management of the business under section 11 (3) of Insurance Act, 1938
(amended by the Insurance Laws (Amendment) Act, 2015)
Particulars From 1 April 2019 to 31 March 2021
Name of person in-charge Tapan Singhel
Designation of person in-charge Managing Director and Chief Executive Officer
Occupation of person in-charge Service
Directorships held by person in-charge Member of the Board of

The Indo German Chamber of Commerce
39. Contribution from Shareholders’ account to Policyholders’ account

In line with IRDAI (Expenses of Management of Insurers transacting General or Health Insurance business) Regulations,
2016, the Company has funded the following amounts from Shareholders’ Account to Policyholders’ Account towards
expenses of management in excess of allowable limit at segmental level:
Segment 31 March 2021 31 March 2020
Fire - -
Marine - 52,100
Miscellaneous - 394,600
We confirm that at an overall level the Company’s expenses are well within expense limits set under IRDAI (Expenses
of Management of Insurers transacting General or Health Insurance business) Regulations, 2016.
In line with IRDAI order dated 10 September 2020, the Company has funded Rs 334,505 thousand from Shareholders’
Account to Policyholders’ Account on account of excess rewards to agents in FY2019 which have been subsequently
clawed back through lower rewards.
40. Potential impact of uncertainties relating to COVID-19

In preparing the accompanying financial statements, the Company management has been required to make
judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities,
equity, income and expenses. These estimates and associated assumptions, at the date of adopting the financial
statements, are based on historical experience and various other factors including the possible effects that may result
from the pandemic, that are believed to be reasonable under the current circumstances.
146
04-37 40-88 90-161
Business impact
COVID-19 outbreak has been declared as a Pandemic by World Health Organization in March 2020. Since the outbreak,
COVID-19 continues to spread across the globe bringing economic activities to a grinding halt leading to significant
volatility in global and Indian financial markets. While things started looking positive in the third quarter, the next
wave hit India towards the end of fourth quarter which has led to regional lockdowns.
The Government is undertaking several measures to restrict the spread of virus and provide financial support to some
stressed sectors. Further, while the COVID-19 vaccination efforts have gained momentum, uncertainty due to the
resurgence of COVID cases across many parts of India is rising.
The extent to which COVID-19 pandemic will impact the Company depends on future spread of the virus and related
developments, which are highly uncertain, including, among other things, resurgence and period/scale of lockdowns
and its repercussions on the economy, availability of the vaccine, government intervention to provide financial support
to the stressed sections, etc. The Company will continue to closely monitor developments as they unfold.
The nation-wide lockdown towards the end of March 2020 required the Company to activate its Business Continuity
Plan to enable operations to run with minimal disruption. The disruption was largely mitigated through the facility to
Work from Home (WFH). WFH was enabled through use of portable devices through the Company’s Virtual private
Network (VPN) ensuring requisite data security controls. Accordingly, the operations of the Company were performed
at remote locations (WFH) through secured servers. From its experience of complete lockdown, the Company further
strengthened its business continuity plan.
As the processes of the Company are mostly automated/system driven, WFH has not led to any material change in the
controls or processes. The Company has an Internal Financial Control framework that has been independently tested
covering all the material controls over financial reporting and found them to be operating effectively at 31 March 2021.
Valuation of investments and Impairment testing

The Company has invested in a well-diversified investment portfolio. Substantial portion of the investments are
readily marketable thereby extending good liquidity support. The investment portfolio, composition of which is largely
governed by regulations, comprises of 93% Debt and 7% Equity. 99% of the debt portfolio comprises of highest credit
rated securities (i.e. sovereign and AAA or equivalent rated). 86% of the Equity portfolio comprises of Nifty 50 stocks.
The Company has used internal and external sources of information including credit reports, economic forecasts
and consensus estimates from market sources on the expected future performance of the underlying companies in
developing the estimates and assumptions to assess the fair value of the investments as at 31 March 2021. Further,
the Company has carried out detailed evaluation of the investment portfolio considering the current market prices vis-
à-vis acquisition cost and the potential impact of COVID-19 on business models of investee companies. In accordance
with the impairment policy of the Company, diminution in the value of investments which is not temporary in nature
has been evaluated on the Balance Sheet date and provisions for the same, as considered necessary have been made
in these financial statements. Refer note 33.
The Company has performed sensitivity analysis on the investment portfolio and in specific on a few potentially
stressed exposures and believes that such sensitivities/stresses have no material impact on the Solvency position of
the Company which stood strong at 345% as against the regulatory requirement of 150%.
The Company has evaluated the recoverability of all its investments and expects to recover the carrying amount
of these assets.
Actuarial reserving
The nation-wide lockdown has resulted in significantly low commercial activity thus positively impacting the loss ratios
during the period of lockdown especially in the motor line. However, with the commercial activity resuming motor
claims are up to pre Covid-19 levels. Third party motor claims are however being settled with a lag as courts have still
not resumed pace for such cases which may add interest burden for us which has been considered while reserving for
at 31 March 2021. Covid-19 has impacted our Retail Health portfolio adversely.
147
As at 31 March 2021 the carrying amount of liabilities were not lower than projected liability using current estimates of
future cash flow under its insurance contracts for any line of business.
Recoverability of other current assets

The Company has evaluated the recoverability of its current assets and expects to recover the carrying amount of
all these assets.
41. Previous year comparatives

Previous year figures have been re-grouped and reclassified wherever necessary to conform to current
period’s presentations.
(Rupees in ‘000)
Sr. Re-grouped Amount Reasons for

No. Re-grouped to from reclassification
Schedule - 4 Operating expenses related to insurance business
a Advertisement and publicity Business 160,392 Re-classification

development and has been done to
promotion ensure
appropriate
presentation
b Other office running expenses Miscellaneous 494,290 Re-classification

expenses has been done to
detail expenses
further
DIN : 03428746
Mumbai Pune Pune
148
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Annexure 1 - Segmental Break up of the Balance Sheet item as at 31 March 2021

Segment results have been incorporated in the Financial Statements. However segment asset and liabilities,
given the nature of the business, have been allocated amongst various segments to the extent possible.
Rupees ('000)
Marine Health Crop
Particulars Fire Cargo Others Motor Insurance Insurance Miscellaneous Total
Premium Earned (Net) FY 2021 2,691,988 1,065,472 2,638 43,608,669 16,091,426 4,722,190 6,178,919 74,361,302
FY 2020 2,679,557 1,170,750 3,240 48,885,203 17,335,876 5,375,351 6,611,845 82,061,822
Premium Received in FY 2021 3,832 14,323 (13) 10,023,459 86,922 - 916,501 11,045,024
Advance FY 2020 30,372 3,793 (13) 9,369,063 183,365 - 1,803,477 11,390,057
Claims Outstanding ( Net ) FY 2021 2,012,137 743,830 15,768 87,202,651 3,652,898 2,912,705 3,862,755 100,402,744
FY 2020 1,777,548 699,250 15,153 70,960,655 2,567,306 4,068,249 3,492,820 83,580,981
Reserve for Unexpired Risk FY 2021 2,896,281 300,889 2,017 25,326,300 8,367,972 297,503 4,468,863 41,659,824
FY 2020 2,797,967 289,155 2,637 25,606,852 7,983,052 246,496 4,922,420 41,848,578
Outstanding premiums FY 2021 4,780 572 - 16,015 1,167,261 11,104,346 56,965 12,349,939
FY 2020 1,826 14,140 - 60,863 67,948 12,461,247 103,406 12,709,430
Solatium Fund FY 2021 - - - 166,933 - - - 166,933
FY 2020 - - - 139,782 - - - 139,782
149
Annexure 2 - Related parties and nature of relationship where transactions made

during the year:
Nature of relationship Name of the related party
Holding Company Bajaj Finserv Limited
Co-promoter Allianz SE
Bajaj Auto Limited
Bajaj Holdings and Investments Limited
Bajaj Allianz Financial Distributors Limited
Bajaj Allianz Staffing Solutions Limited
Bajaj Electricals Limited
Bajaj Finance Limited
Bajaj Allianz Life Insurance Company Limited
Bajaj Financial Securities Limited
Bajaj Auto Holdings Limited
Bajaj Finserv Direct Limited
Bajaj Housing Finance Limited
Bajaj Finserv Health Limited
Mukand Engineers Limited
Mukand Limited
Hind Musafir Agency Limited
Allianz Cornhill Information Services Private Limited
AGCS Marine Insurance Company
Allianz Insurance Management Asia Pacific (Allianz Singapore)
Allianz Global Risks US Insurance Company
Allianz Global Corporate & Speciality SE, UK
Allianz Global Corporate & Speciality SE, Italy
Allianz Global Corporate & Speciality SE, Munich
Allianz Global Corporate & Speciality SE, India Branch
Allianz SE Reinsurance, branch Asia Pacific
Allianz Global Corporate & Speciality SE, Singapore (Previously Known Allianz Insurance
Company of Singapore - PTE )
Allianz Global Corporate & Speciality SE, France
Euler Hermes Singapore Branch
Allianz Fire and Marine Insurance Japan Ltd
Allianz Technology SE
(Previously Allianz Managed Operations & Services SE)
Allianz Technology SE, India
(Previously Allianz Managed Operations & Services SE India)
AWP Assistance (India) Private Limited (Previously AGA Assistance (India) Private Limited)
AWP Services (India) Private Limited (AGA Services (India) Private Limited)
Euler Hermes Services India Private Limited
AWP P&C SA Saint Ouen Paris
Key managerial personnel (KMP) Tapan Singhel, Managing Director and Chief Executive Officer
Relatives of Key management personnel as per AS-18 disclosure –

Tapan Singhel, Managing Director and Chief Executive Officer
Nature of Relationship Relative's Name
Wife Sangeeta Singhel
Daughter Neelashma Singhel
Daughter Tushita Singhel
Father Ran Bahadur Singhel
Mother Shobha Singhel
150
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Related Party Disclosures under AS 18 for the year 2020-21

Rupees (‘000)
As on and for the As on and for the
Sr. Name of the period ended period ended
No. related party Description 31 March 2021 31 March 2020
1 Bajaj Finserv Limited Expenditure
Rent, Rates and Taxes 19,789 21,394
Legal and Professional charges 50,902 33,304
Employees' remuneration, benefits & other manpower costs 136,584 -
Billable Expenses Reimbursed
-Advertisement and publicity 1,091 3,436
-Maintenance and Supplies 464 -
-Legal and Professional charges 32,400 27,700
Income
Insurance Premium (4,876) (11,970)
Other
Employee Stock Option Payment 225,650 -
Dividend Paid 1,101,170 815,682
Outstanding Balance- Assets/(Liabilities)
Share Capital (815,682) (815,682)
Other Assets (Deposit paid against Leased Premises) 21,394 21,394
Sundry creditors (17,955) -
Unallocated Premium (6,907) (580)
2 Bajaj Auto Limited Expenditure
Claims Incurred 5,490 16,464
Income
Outstanding Balance- Assets/(Liabilities) -
Unallocated Premium (81,451) (80,053)
3 Bajaj Holdings and Expenditure
Investments Limited
- Miscellaneous Expenses (Insurance) 422 365
Income
Billable Expenses Recovery
-Legal and Professional charges - (35)
4 Bajaj Allianz Expenditure
Financial Distributors
Limited
Commission Paid 17,157 152,169
Income
Insurance Premium (104) (1,035)
151
Rupees (‘000)
Unallocated Premium (59) (82)
Agents Balances (19) (12,921)
5 Bajaj Allianz Staffing Expenditure
Solutions Limited
Employees' remuneration, benefits & other manpower costs 858,087 1,074,624
Claims Incurred 540 540
Income
Advances recoverable in cash or in kind - 70
6 Bajaj Electricals Expenditure
Limited
Income
7 Bajaj Finance Limited Expenditure
Interest and Bank Charges 43,117 74,335
Employees' remuneration, benefits & other manpower costs 39,237 19,115
Income
Insurance Premium (611,995) (2,230,228)
Interest, Dividends and Rent -Gross (580,010) (225,641)
Other
Redemption of Debentures - (500,000)
Unallocated Premium (27) (31,964)
Agents Balances (7,294) (14,764)
Outstanding Premium (Receivable against Bank Guarantee) 18,626 48,477
Investment Held (Book Value) 8,002,044 7,004,059
Interest Receivable on Investments 366,752 364,656
Advances recoverable in cash or in kind 2,238 2,604
8 Bajaj Allianz Life Expenditure
Insurance Company
Limited
Claims Incurred 152 2,539
Rent, Rates and Taxes 27,738 30,635
152
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Rupees (‘000)
- Communication Expenses 136 1,052
- Employees' remuneration, benefits & other manpower costs - 27
- Information Technology Expenses - 34,911
- Maintenance and Repairs - 150
- Rent, Rates and Taxes 1,292 1,407
Income
- Communication Expenses - (1,624)
-Legal and Professional Charges (6) (150)
-Maintenance & Repairs (735) (1,596)
-Miscellaneous Expenses (Electricity Expenses) (5,520) (5,135)
-Rent, Rate and Taxes (739) (1,042)
Other
Recovery of Salary Cost Paid on behalf (16,295) -
Security Deposit Paid/(Returned) (5,518) 1,815
Combi Product Premium Paid - 29
Other Assets (Deposit paid against Leased Premises) 10,233 15,751
Sundry creditors - (17)
Advances recoverable in cash or in kind 375 533
9 Bajaj Financial Income
Securities Limited
Insurance Premium (949) (57)
10 Bajaj Auto Holdings Income
Limited
Insurance Premium - (6)
Unallocated Premium 2 (2)
11 Bajaj Finserv Direct Expenditure
Limited
Income
Agents Balances (3,927) (3,033)
153
Rupees (‘000)
12 Bajaj Housing Expenditure
Finance Limited
Income
Interest, Dividends and Rent -Gross (105,130) (2,561)
Outstanding Balance- Assets/(Liabilities) -
Unallocated Premium - (222)
Investment Held (Book Value) 1,499,880 1,499,959
Interest Receivable on Investments 10,392 9,977
Outstanding Premium (Receivable against Bank Guarantee) (127) 1,655
13 Bajaj Finserv Health Income
Limited
14 Mukand Engineers Expenditure
Limited
Income
15 Mukand Limited Expenditure
Income
16 Hind Musafir Agency Expenditure
Limited
Travel, Conveyance and vehicle running 6,844 104,712
Income
Sundry creditors (22) (22)
17 Allianz Cornhill Income
Information Services
Private Limited
154
04-37 40-88 90-161
Rupees (‘000)
18 Allianz SE, Germany Expenditure
-Software Expenses - 360
Other
Dividend Paid 386,898 286,591
Advances recoverable in cash or in kind
Share Capital (286,591) (286,591)
19 Allianz Insurance Income
Management Asia
Pacific (Allianz
Singapore)
Billable Expenses Incurred reversed (449) -
Sundry creditors - (449)
20 AGCS Marine Income
Insurance Company
Claims on Reinsurance Ceded 9 -
Balances due to Other Insurance Companies - (27)
21 Allianz Global Expenditure
Risks US Insurance
Company
Premium on Reinsurance Ceded 1,578,511 1,704,455
Income
Commission on Reinsurance Ceded (199,490) (180,184)
Claims on Reinsurance Ceded (983,662) (449,195)
Balances due to Other Insurance Companies (154,390) (379,572)
Corporate &
Speciality SE, UK
Premium on Reinsurance Ceded (1,629) 825
Income
Commission on Reinsurance Ceded 3 (117)
Claims on Reinsurance Ceded (185) (9)
Corporate &
Speciality SE, Italy
Premium on Reinsurance Ceded - 254
Income
Commission on Reinsurance Ceded (141) (107)
155
Rupees (‘000)
Balances due to Other Insurance Companies - (763)
Corporate &
Speciality SE, Munich
Premium on Reinsurance Ceded 8,848 165
Income
Commission on Reinsurance Ceded (1,233) (41)
Sundry creditors
Corporate &
Speciality SE, India
Branch
Premium on Reinsurance Ceded 87,408 970,908
Income
Insurance Premium (615) (1,046)
Balances due to Other Insurance Companies 8,468 (56,526)
26 Allianz SE Expenditure
Reinsurance, branch
Asia Pacific
Premium on Reinsurance Ceded (CAT XOL Premiun Paid) 2,618 3,238
Income
Claims on Reinsurance Ceded (131,960) 5,994
Claims on Reinsurance Ceded (CAT XOL Claim Recovery) - (7,843)
27 Allianz Global
Corporate &
Speciality SE,
Singapore (
Expenditure
Previously known
as Allianz Insurance
Company of
Singapore - PTE )
Premium on Reinsurance Ceded 1 (2,133)
156
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Rupees (‘000)
Income
Commission on Reinsurance Ceded (0) 171
Balances due to Other Insurance Companies 10,639 7,257
Corporate &
Speciality SE, France
Premium on Reinsurance Ceded - (1,354)
Income
Commission on Reinsurance Ceded - 102
Claims on Reinsurance Ceded (609) (1,000)
Balances due to Other Insurance Companies - (3,901)
29 Euler Hermes Expenditure
Singapore Branch
Income
Billable expenses recovery
-Employees' remuneration, benefits & other manpower costs (20,034) (25,035)
Due from other entities carrying on insurance business,including 20,736 4,026
reinsurers (net)
Balances due to Other Insurance Companies (21,942) 12,703
30 Allianz Fire and Expenditure
Marine Insurance
Japan Ltd
Premium on Reinsurance Ceded 2,299,906 164,988
Income
Claims on Reinsurance Ceded (14,634) (89)
31 Allianz Technology SE Expenditure
(Previously Allianz
Managed Operations
& Services SE)
Information Technology Expenses
- Opus License Fees 22,023 13,344
- Information Technology Expenses 2,508 6,026
157
Rupees (‘000)
Sundry creditors (58,562) (36,634)
32 Allianz Technology Income
SE, India
(Previously Allianz
Managed Operations
& Services SE India)
Insurance Premium (63,884) (59)
33 AWP Assistance Expenditure
(India) Private
Limited(Previously
AGA Assistance
(India) Private
Limited)
Insurance Commission 2,962 12,441
Income
- Maintenance and Repairs (126) (120)
Agents Balances (731) 991
34 AWP Services (India) Expenditure
Private Limited (AGA
Services (India)
Private Limited)
Marketing and Support Services Expenses 6,105 44,068
Sundry creditors (67) (4,405)
35 Euler Hermes Expenditure
Services India Private
Limited
Other Acquisition Cost 19,871 22,059
36 AWP P&C SA Saint Expenditure
Ouen Paris
Premium on Reinsurance Ceded 1,030,391 2,731,874
Employees' remuneration, benefits & other manpower costs (56,543) (75,710)
(Recovery)
Income
Commission on Reinsurance Ceded (175,030) (1,731,862)
158
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Rupees (‘000)
37 Tapan Singhel, MD Expenditure
& Chief Executive
Officer
Income
Notes:
1. Reinsurance balances are net of Commission and claims wherever applicable
2. Above amounts are excluding GST wherever applicable
159
Annexure 3 - Summary of Financial Statements for the year ended 31 March 2021
Particulars 2021 2020 2019 2018 2017
OPERATING RESULTS
Gross Written Premium 126,243,788 128,330,656 110,970,146 94,865,414 76,870,636
Net Premium Income (net of Reinsurance) 74,172,549 80,159,624 77,744,606 67,325,358 53,008,839
Income from Investments (net of losses) 11,932,977 11,964,950 9,298,583 8,837,656 7,374,934
Miscellaneous Income 180,860 155,924 186,309 171,870 148,081
Total Income 86,286,386 92,280,498 87,229,498 76,334,884 60,531,854
Commissions (net including brokerage) 493,726 916,337 3,747,151 3,180,711 356,263
Operating Expenses 20,597,713 23,202,954 18,071,090 14,051,321 13,614,489
Net Incurred Claims 50,929,443 58,079,200 48,087,575 40,490,133 34,777,947
Change in Unexpired Risk Reserve (188,754) (1,902,198) 7,646,837 6,739,669 3,638,384
Operating Profit/Loss 14,788,762 12,430,905 9,676,845 11,873,050 8,144,771
NON OPERATING RESULTS
Total income under Shareholder's Account 2,904,263 1,328,603 1,838,319 1,656,083 2,636,408
Profit before Tax 17,693,025 13,759,508 11,515,164 13,529,133 10,781,178
Provision for Tax (4,392,141) (3,771,738) (3,716,581) (4,316,721) (3,502,795)
Profit after Tax 13,300,884 9,987,770 7,798,583 9,212,412 7,278,383
MISCELLANEOUS
Policyholder's Account
Total Funds
Total Investments
Yield on Investments
Not Applicable being General Insurance Company
Shareholder's Account
Total Funds
Total Investments
Yield on Investments
Paid up Equity Capital 1,102,273 1,102,273 1,102,273 1,102,273 1,102,273
Net Worth 71,329,356 59,516,540 50,857,618 44,387,883 35,175,471
Total Assets (Gross of current liabilities and 259,720,342 218,657,101 197,247,571 169,376,216 127,288,406
provisions)
Yield on Total Investments 6.78% 8.40% 7.16% 7.69% 9.86%
Earning Per Share 120.67 90.61 70.75 83.58 66.03
Book value per Share 647.11 511.86 468.49 405.20 320.67
Total Dividend 1,488,068.00 1,102,272.50 1,102,272.50 - -
Dividend per share 13.50 10.00 10.00 - -
160
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Annexure 4 - Ratios for the year ended 31 March 2021

Sr. No. Particulars For the year ended 31 March 2021 For the year ended 31 March 2020
1 Gross Direct Premium Growth Rate -1.65% 15.56%

Motor -9.64% 7.69%
Motor OD -4.20% -0.16%
Motor TP -13.28% 13.69%
Fire 35.16% 29.54%
Marine Cargo -6.14% 10.19%
Marine Others -0.97% 3.05%
Workmen's Compensation / Employers' Liability -8.96% 10.17%
Public/Product Liability -6.28% 13.96%
Aviation -32.07% 10.58%
Personal Accident -26.27% 5.10%
Health -4.60% -5.80%
Credit Insurance 9.42% 11.87%
Others -9.07% 16.59%
2 Gross Direct Premium to Net Worth Ratio 1.76 2.15
3 Growth Rate of Net Worth 19.85% 17.03%
4 Net Retention Ratio 58.75% 62.46%
Motor 91.67% 94.75%
Motor OD 94.35% 94.58%
Motor TP 89.69% 94.85%
Fire 16.36% 11.29%
Marine Others 1.92% 2.49%
Workmen's Compensation / Employers' Liability 93.27% 93.44%
Public/Product Liability 35.73% 31.05%
Aviation 1.39% 41.20%
Health 78.45% 75.78%
Credit Insurance 1.00% 1.00%
Others 36.72% 28.34%
5 Net Commission Ratio 0.67% 1.14%
Motor 5.39% 7.37%
Motor OD 16.45% 17.31%
Motor TP -3.22% 0.72%
Fire -58.18% -100.32%
Marine Others -252.68% -228.96%
Workmen's Compensation / Employers' Liability 12.52% 12.18%
Public/Product Liability 4.81% 3.35%
Engineering -61.05% -35.30%
Aviation 10.93% -0.62%
Health 4.92% 2.84%
Credit Insurance -320.50% -548.62%
Crop Insurance -23.89% -18.69%
Others -3.26% -46.35%
6 Expenses of Management to Gross Direct Premium Ratio 22.71% 24.63%
7 Expenses of Management to Net Written Premium Ratio 38.49% 39.27%
8 Net Incurred Claims to Net Earned Premium 68.45% 70.74%
9 Combined Ratio 96.89% 100.83%
10 Technical Reserves to Net Premium Ratio 1.91 1.53
11 Underwriting Balance Ratio 0.03 0.00
Fire 0.00 -0.04
Marine 0.00 -0.07
Miscellaneous 0.03 0.00
12 Operating Profit Ratio 19.23% 14.45%
13 Liquid Assets to liabilities ratio 0.25 0.27
14 Net Earning Ratio 17.93% 12.46%
15 Return on Net worth 18.65% 16.78%
16 Available Solvency Margin (ASM) to Required Solvency Margin 3.45 2.54
(RSM) Ratio
17 NPA Ratio
Gross NPA 0.76% 0.94%
Net NPA 0.14% 0.17%
Ratios are computed in accordance with and as per definition given in the Master Circular on Preparation of Financial Statements dated 5 October 2012 and
subsequent corrigendum thereon dated 3 July 2013.
161
Notes
162
04-37 40-88 90-161
Notes
163
Notes
164
Spontaneous and thoughtful
acts of kindness make this world
a better place.
Togetherness Adaptability
Gratitude Optimism
Hope Conscientiousness
BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED

Bajaj Allianz House, Airport Road, Yerawada,
Pune - 411 006, Maharashtra, India
www.bajajallianz.com | bagichelp@bajajallianz.co.in
IRDAI Reg No.: No.113. dated 2 May 2001

Tel: 020 6602 6666 | Fax no.: 020 6602 6667 To view the digital
CIN: U66010PN2000PLC015329 annual report, scan this code.

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BAJAJ ALLIANZ

MD & CEO’s Message ..................................................................................................... 09

Management Discussion and Analysis...........................................................................12

Statutory Reports 40-88

Annexures to Directors’ Report ..................................................................................... 50

Management Report ...................................................................................................... 77

Financial Statements 90-161

Profit and Loss Account................................................................................................... 99

Balance Sheet................................................................................................................ 100

Receipts and Payments Account ..................................................................................101

Sanjiv Bajaj Lila Poonawalla

Ritu Arora Ritu Arora

Niraj Bajaj Sanjiv Bajaj

Sergio Balbinot Ranjit Gupta

Meleveetil Damodaran Suraj Mehta

Ranjit Gupta Anami Roy

Suraj Mehta Shashi Kant Sharma

Lila Poonawalla Investment Committee

Tapan Singhel Ramandeep Singh Sahni

Ritu Arora Ritu Arora

Ranjit Gupta Ranjit Gupta

Anami Roy Tapan Singhel

Tapan Singhel Chief Financial Officer

Lila Poonawalla Company Secretary & Compliance Officer

Policyholders’ Protection Committee Secretarial Auditor

Sanjiv Bajaj Shyamprasad D Limaye

Ritu Arora Registered Office & Head Office

K S V V S Murthy Naidu Aditya Sharma Sourabh Chatterjee Aashish Sethi

K V Dipu Vikramjeet Singh Alpana Singh Ashish Agrawal

MD & CEO’S Message

MANAGEMENT DiSCUSSION AND ANALYSIS

A. Economic and Industry performance

2. Insurance industry overview

a. Premium growth and relative performance of insurers

GDPI Growth Trend FY2017 to FY2021

Private PSU Standalone Specialized Total

Source: IRDAI and General Insurance Council statistics

Over the period of FY2017 to FY2021, on GDPI:

Market share based on GDPI (in %)

6.5% 6.0% 4.8% 5.6% 6.6%

45.0% 40.5% 38.6% 36.1%

48.0% 48.2% 49.3%

FY2017 FY2018 FY2019 FY2020 FY2021

Private PSU Standalone Specialized

Source: IRDAI and General Insurance Council statistics

b. Shift in business mix

Line of business wise mix trend FY2017 to FY2021

11.4% 32.0% 12.6% 31.8% 34.3% 16.7% 16.5% 38.0%

49.3% 48.4% 47.0% 46.7% 45.5%

6.2% 6.4% 5.7% 5.2% 5.4% 5.5% 6.0%

FY2017 FY2018 FY2019 FY2020 FY2021

LOB mix: Private players

LOB mix: PSU players

C. Distribution channel mix

Channel Mix Trend FY 2017 to 9MFY2021

32% 31% 33% 33% 36%

30% 30% 27%

FY2017 FY2018 FY2019 FY2020 9M FY2021

d. Regulatory changes and implications thereof

Loss of Job / Income Cover

Withdrawal of Long-term Motor Package policies

Guidelines on Public Disclosures by Insurers

Standards for hospital in the network providers - Disclosure of Quality Parameters